BT looks set to take a £2bn hit as a result of the poor performance of its European businesses outside of the UK.
The telecommunications giant is likely to announce the write-down when it reports its annual results in May, following the emergence that almost all of its European ventures are loss making.
If the write-down is as large as analysts are predicting, it would plunge BT back into the red.
It is already public knowledge that Viag Interkom, its fixed line operator in Germany, and Telfort in Holland, have been underperforming.
BT acquired both of these operations largely for their mobile operations. Viag's mobile assets have since been spun off into the separately quoted group mm02, which includes BT Cellnet.
BT is reported to have discussed the write-down with its major shareholders, some of which are calling for the company to pull out of Europe altogether.
BT has said the write-offs are purely speculative at this stage.
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