MARKET TALK: S&P Equity Downgrades BT To Sell From Hold

17th Jun 2010 17:27

1627 GMT [Dow Jones] S&P Equity Research downgrades BT Group (BT.A.LN) to sell from hold following recent share price strength. Also says if News Corp (NWS), rated buy, is successful in taking full control of British Sky Broadcasting Group (BSY.LN), rated hold, this could pose a threat to BT's fledgling IPTV business. Adds that the uncertainty about the pension regulator review remains a concern. Valuation-wise, sees BT's dividend yield of 5% as unattractive versus the peer group median of about 8%. Maintains 130p price target. Shares closed Thursday at -0.7% at 139.6p. News Corp, which owns Dow Jones & Co, the publisher of this newswire, has a stake of about 39% in BSkyB. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 17, 2010 12:27 ET (16:27 GMT)