BT in talks to sell UK data centres to HP

Sun May 11, 2008 1:12pm BST

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LONDON (Reuters) - BT Group (BT.L) is in talks to sell its British data centres to the U.S. computer firm Hewlett-Packard (HPQ.N) for 1.5 billion pounds, the Sunday Times reported.

The report said the move would deepen existing ties between the two companies and help improve the profitability of BT's Global Services division which is watched closely by analysts and investors.

The report said the deal was still being worked on and should be signed in the next few weeks.

Nobody at BT was immediately available to comment.

BT and HP announced an agreement in 2004 to pool their respective strengths to win work from the large corporate IT and telecoms business.

(Reporting by Kate Holton; editing by Rory Channing)

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