Local loop bidder in talks with Oftel over £8bn BT bid

The consortium gunning for BT's local loop business has been in talks with telecoms regulator Oftel.

A consortium of investors, called Earthlease, lead by US finance company Babcock and Brown went through the details of its £8bn offer for the local loop with the regulator, according to Reuters.

Earthlease intends to invest £500m a year over the next decade developing the infrastructure so that it can offer broadband to ISPs desperate to offer customers high-speed internet access.

BT has so far rebuffed Earthlease's advances, but the telecom giant's shareholders are keen for the deal to go ahead. Other telcos are also hoping the deal will go through, as they have complained bitterly in the past that BT is making heavy weather of opening up its infrastructure to them.