BT has confirmed it has slashed its costs by £1 billion significantly ahead of schedule, driving a jump in the company’s share price.

The telecoms giant said it has delivered on the gross annual cost-savings plan 18 months ahead of its original March 2023 target.

BT confirmed the figures after its accelerated cost-cutting was reported in the Telegraph.

It comes amid speculation that the London-listed company is preparing for a possible takeover attempt by French telecoms tycoon Patrick Drahi.

Sky News reported last week that BT had hired advisers to strengthen its defence against a potential takeover bid.

Mr Drahi invested in BT in June, taking a 12% stake in the business, worth around £2.2 billion.

As part of the deal, Mr Drahi confirmed he did not plan to make a full takeover bid, but that was only binding for six months so it will expire in December.

BT’s cost-cutting figures came after the group revealed lower profits and revenues in the latest quarter.

Shares in BT were 4.4% higher at 145.05p in early trading.