Market Extra: Why BT’s stock just plunged 19% and wiped $9 billion off its market cap

Giant U.K. telecom BT Group PLC on Tuesday admitted that the cost of its Italian accounting scandal will be far greater than expected — and traders in London and New York are showing no mercy.

The stock BT.A, -17.75% has plunged 19% in London, setting it on track for its biggest one-day percentage loss since October 2008 and its lowest close since June 2013. BT’s U.S.-listed shares BT, +0.53% were also down 19% ahead of the open.

The move has wiped £7.14 billion ($8.93 billion) off the company’s market capitalization, which is now around £30.95 billion, according to FactSet data.

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