BT slumps on Italy 'improper practices'

(ANSA) - Rome, January 24 - Shares in British Telecom dropped 17% on the London bourse early on Tuesday, after BT announced writedowns three times larger than expected on accounting errors in its Italian business that originally emerged last October. BT increased its initial write-down estimate of 145 million pounds to 530 million pounds, reducing estimates on profit, revenue, and cash flow. "We are deeply disappointed with the improper practices which we have found in our Italian business," said BT Group CEO Gavin Patterson, calling it "an extremely serious matter".