Will Microsoft or Bell Atlantic be BT's buyer?

British Telecommunications PLC officials declined to confirm today whether there is truth to the rumors that Microsoft Corp. or Bell Atlantic Corp. may have plans to acquire the company, but the U.K. telco's share price jumped nonetheless amid the speculation yesterday.

A BT spokesman called the telecommunications market "awash with speculation" and said that BT makes it a policy to not comment on rumors. "I'm just waiting for Woolworth's to put in a bid," the spokesman joked.

Microsoft, or any other company wanting to acquire BT, would be looking at a whopping price tag. BT's current market capitalization is 38 billion pounds ($60.8 billion), the spokesman said. "Oddly enough, [BT's market cap] is the exact same amount as Bill Gates' personal wealth," the spokesman said.

While a Redmond-London linkup between the world's software powerhouse and a British telecommunications giant might seem an unlikely match, BT has continued to be the target of merger speculation since its plans to acquire MCI Communications Corp. fell through last year. In October, BT's $21 billion bid for MCI was ousted by a competitive $30 billion bid from WorldCom, Inc. BT then sold its remaining 20% share of MCI to WorldCom for $7 billion.

Since then, rumors have circulated that BT would join up with GTE Communications Corp., AT&T Corp., Bell Atlantic Corp. and a host of other U.S. telcos. BT is still interested in a deal that would give it entry into the U.S. market, officials have said.

The idea of Microsoft acquiring BT is one of the most far-fetched rumors so far, said the BT spokesman. However, it still caused BT's stock price to jump yesterday to close at a 52-week high of 583 pence, up 26 points from the previous day's trading.