Britain to Offer Steel Firm for Sale to Public
- Share via
LONDON — The Thatcher government said today it will sell state-owned British Steel Co. to the public in late November at a price to be disclosed later.
It will be the first privatization since the sell-off of the government’s one-third stake in British Petroleum Co. PLC, which coincided with the stock market crash last fall. Analysts said they expect the sale to raise $3 billion. The $12-billion BP share sale was a flop with investors, and left underwriters holding large chunks of the stock.
Kuwait subsequently stepped in as a buyer, accumulating a 21.68% stake in the oil giant which the government this week ordered more than halved, saying such a large holding would conflict with the public interest.
15% Cap on Holdings
The government said it will hold a special share in British Steel for five years after the sale to prevent any single holding from exceeding 15%.
Prime Minister Margaret Thatcher’s government has sold off billions of dollars of state-owned assets to the public to promote capitalism and wider share ownership. Past sales have included British Airways, British Gas, and luxury auto maker Jaguar.
Sign up for Essential California
The most important California stories and recommendations in your inbox every morning.
You may occasionally receive promotional content from the Los Angeles Times.
