The figure is substantially lower than the £3bn BT originally asked for, after Yell's value was hit by a new pricing structure for the group unveiled by the government. This capped advertising charges at inflation minus 6% in an effort to curb the firm's monopoly of the classified ads market.
Sir Christopher Bland, BT's new chairman, is believed to have pushed the deal to an early conclusion. He is also believed to have waived other possible alternatives of demerging the business or a partial stock flotation. Proceeds from Yell's sale will go towards BT's mountainous debt of £30bn.
BT will now concentrate on finding subscribers for its £5.9bn rescue rights issue. Earlier this week, it split itself into two businesses -- BT Wireless, the mobile phone operation, and Future BT, the rest of the business.