BSkyB launches fundraising move

BSkyB moved to build up a potential war chest for acquisitions today after it confirmed plans for a £1bn (€1.46bn) bond issue.

The company said the fundraising exercise was for general corporate purposes, but added that proceeds may also be used for acquisitions.

It is believed to be keen to develop operations in telephony and broadband internet access, particularly as merger partners NTL and Telewest already offer the triple-play bundle of television, broadband and telephony.

The broadcaster is also said to want to install equipment in BT’s local exchanges in order to send its own internet services into homes.

The push into telephone and broadband is likely to see the company join the bidding for One.Tel, the firm put up for sale for about £300m (€438m) by British Gas owner Centrica.

The Daily Telegraph reported today that Sky was understood to be among more than a dozen companies to have expressed an interest in the business. Others are thought to include Cable & Wireless and private equity group Apax.

One.Tel has around 70,000 broadband customers and also provides mobile telephony services. BSkyB may also buy a smaller internet provider with expertise in local loop unbundling – the process of installing equipment in BT exchanges.