Britain's biggest rights issue kicked off this morning as British Telecom shareholders got the chance to trade the rights to the heavily discounted extra shares they are being offered.
Britain's largest fixed-line operator is urging shareholders to take up its £5.9bn sterling cash call in a bid to wipe a quarter off its £28bn debt pile.
Shareholders can buy three shares at 300p each for every 10 they own. This represents a 47% discount to the share price. BT shares closed over 5% lower at 458.5 pence sterling in London this evening.
Between May 21 and June 14, when the 1.9 billion new shares start trading, investors can decide if they wish to take up, sell or pass on the rights issue.
