BT this morning confirmed it has made a £67 million bid for broadband internet minnow PlusNet in bid to grab further market share in the fiercely competitive industry.

The telecoms giant has made a recommended 210p per share offer for the AIM-listed retail broadband provider, which specialises in the provision of workplace services and has a strong reputation for customer service.

PlusNet confirmed earlier this month that it was in discussions with an unamed suitor followig media speculation it was in takeover talks with BT.

The takeover bid is the latest in a series of consolidation moves within the industry. In June, O2 surprised the market with a fully-priced £50 million takeover of Be while Carphone Warehouse snapped up AOL's UK assets last month. Further speculation has surrounded a possible takeover for Pipex Communications.

BT has had a longstanding relationship with PlusNet given BT's retail arm has already taken PlusNet products and Lee Strafford, chief executive of PlusNet, is a former BT employee.

"Whilst the PlusNet directors continue to believe that PlusNet is a high quality business, our sector is consolidating and there are considerable benefits to PlusNet in becoming part of BT," Mr Strafford said.

He said BT had undertaken to retain PuusNet's culture and identity.

Ian Livingston, chief executive of BT Retail, said the deal "makes great sense for BT".

"We already provide the UK's most popular and best-performing ADSL broadband service and this acquisition will ensure even more people can enjoy our market-leading services," Mr Livingston said.

BT shares were up 0.75p to 281.75p in early trading while PlusNet shares were 2.5 per cent higher at 211p..

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