BT shares fell by a fifth after its profit warning

BT facing criminal inquiry over Italy accounting scandal

An investigation into accounting practices has been launched by a veteran prosecutor behind high profile cases in Italy.

Prosecutors in Milan have confirmed an investigation into allegations of false accounting and embezzlement at BT's Italian arm.

It is being led by Fabio De Pasquale - a veteran of high-profile investigations, including a long-running inquiry into the former Italian Prime Minister Silvio Berlusconi.

The announcement was made a day after the group suffered its worst ever one-day share price fall on revealing a massive uplift in the cost of its problems in Italy and downward revisions to its profit forecasts.

The company's present boss in Europe, Corrado Sciolla, will...