BT shelves office move

BT has decided not to sell its central London headquarters - a signal that it believes it has finally rehabilitated itself with the City. Last year the telecoms giant's then chief executive, Sir Peter Bonfield, announced plans to sell large parts of its property portfolio in an attempt to reduce debts of £30bn, and BT's plush headquarters near St Paul's Cathedral were earmarked.

But with mobile division mmO2 demerged, borrowings cut after a record £5bn rights issue and a new chief executive in place, BT is abandoning plans to shift to less ostentatious lodgings at investment bank Merrill Lynch's new building nearby.

Pierre Danon, chief executive of BT's retail arm, said: 'When Peter announced the move, it was very symbolic. It was part of the retrenchment process. Now there is a new chief executive. Ben Verwaayen is not attached to this place but he wants to know if that symbolic move really does save money.'

Other options being examined include letting a wing of the headquarters.