P.M. BRIEFING : British Water Sale a Hot Item
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LONDON — Britain’s water companies made a big splash on London’s stock market today as some of the 2.7 million investors who bought stock in 10 companies in England and Wales reaped instant profits when it began trading.
The controversial sell-off of the companies was the latest in Prime Minister Margaret Thatcher’s sweeping privatization program and the third biggest after British Petroleum and British Gas.
The $8.4-billion flotation had 5.7 orders for each share offered. Delighted government officials hailed the demand for the stock as a reaffirmation of popular capitalism.
Northumbrian Water Group PLC was the star performer, surging to $2.72 compared with the $1.60 for which the government sold each share. It was buoyed by takeover speculation.
Other water companies made 64 cents or so on paper for their new owners.
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