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The UK group is seeking to buy a lossmaking division of CS Communication & Systèmes, which manages communications networks and related IT systems for French companies and public sector bodies.

It should be the latest in a string of bolt-on acquisitions by BT Global Services, which has become the UK group's international growthengine by serving multinationals. BT Global Services has been expanding over the past three years through deals in Asia, Europe, the US and Latin America.

In Europe, BT Global Services' most important region, the UK group is a leading operator in Germany, Italy and Spain, as well as some of the Benelux countries.

However, BT has an underdeveloped presence in France and the proposed deal with CS Communication will more than double the UK group's workforce in the country.

BT said it had made a binding cash offer of up to €60m (£40.5m) to CS Communication for its missioncritical infrastructures division. The division generated €138m of revenue in 2006 and had an operating loss of €1.2m. It employs 1,400 people. BT Global Services generated revenues of €257m in France in 2006-07, a 14 per cent increase, and employs 900 people. Dominique Raviart, analyst at Ovum, a consulting firm, said BT should be able to secure revenue of €400m in France following the acquisition. He said the proposed €60m purchase price looked "very reasonable for BT to scale up its influence in the French market", but it "will need to demonstrate it can turn around the operation".

BT's proposed deal should intensify its battle for corporate customers with France Telecom, the country's former state monopoly.

Date created: 06.08.2007