British Telecommunications Plc Announces Rights Offering.Business Editors NEW YORK--(BUSINESS WIRE)--May 11, 2001 Three for Ten Rights Issue At a Price of (Pound)3.00 Per Share or U.S.$ 42.63 Per ADS BT (NYSE NYSE See: New York Stock Exchange :BTY BTY Battery BTY Betty BTY Back To You BTY Better Than You BTY Blessings to You ) has announced a three for ten rights offering to raise significant equity funding Equity funding An investment consisting of a life insurance policy and a mutual fund. The insurance policy is paid by the collateral value of fund shares, giving the investor the advantages of insurance protection with the growth potential of a mutual fund. to provide future flexibility for its restructuring plans. BT is one of Europe's leading communications companies offering high quality innovative voice, broadband data, internet and wireless services. BT is proposing to raise approximately (pound)5.9 billion (U.S.$ 8.4 billion), net of expenses, by the issue of up to 1,975,580,052 new BT ordinary shares (par value 25 pence) at a price of (pound)3.00 per share. The issue is being made by way of a rights issue to qualifying shareholders, including shareholders in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , on the basis of three new BT shares for every ten existing BT shares held at 5:00 p.m. (London time) on May 9, 2001. Eligible certificated holders of BT shares will be sent a provisional allotment letter in the period from May 14, 2001 to May 18, 2001. Eligible holders of BT shares in CREST (the UK paperless settlement and holding of uncertificated securities system) will receive a CREST credit of the "nil paid" rights on May 21, 2001. The "nil paid" rights are expected to trade on the London Stock Exchange London Stock Exchange London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. from 8:00 a.m. (London time) on May 21, 2001 until 4:30 p.m. (London time) June 13, 2001. The "nil paid" rights to subscribe for new ordinary shares will expire at 9:30 a.m. (London time) on June 15, 2001. The last day for eligible BT shareholders to subscribe for new BT shares is 9:30 a.m. (London time) on June 15, 2001. Trading on the London Stock Exchange of the new "fully paid" BT shares is expected to commence on June 14, 2001. These so called "fully paid" shares represent the right to receive the new BT shares issued in the rights offering while the BT share register is being updated. The issue price of (pound)3.00 per new BT share represents a 47 per cent discount to the London Stock Exchange closing middle market price of (pound)5.68 pence per BT share on May 9, 2001. In view of the substantial discount at which the new BT shares are being issued, the rights offering is not being underwritten. The rights offering is also being made to holders of BT ADSs on the basis of three new BT ADSs for every ten existing BT ADSs held on 5:00 p.m. (New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. time) May 18, 2001 at the subscription price of U.S.$ 42.63 per new BT ADS. Each BT ADS represents 10 BT shares. Each new ADS will cost U.S.$ 49.02, which is 115% of the ADS subscription price to account for possible exchange rate fluctuations and a U.K. tax to be paid for the underlying new ordinary shares. This U.K. tax is payable by each person who exercises an ADS right. The ADS rights will expire on 5:00 p.m. (New York City time) June 11, 2001. The last day for eligible ADS holders to subscribe for new BT ADS is 5:00 p.m. (New York City time) June 11, 2001. ADS rights are expected to trade on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. from 9:30 a.m. (New York City time) on May 21, 2001 until 5:00 p.m. (New York City time) on June 8, 2001. Trading in the new BT ADSs is expected to commence on the New York Stock Exchange on June 18, 2001. A prospectus relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the rights offering may be obtained from Georgeson Shareholder Communications Inc., 17 State Street, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , N.Y. 10004, telephone (888) 382 8303. A registration statement relating to the new BT shares has been filed with the Securities and Exchange Commission and has become effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the new BT shares or the new BT ADSs in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. This announcement is issued by BT plc. Inquiries about this news release should be made to the BT Group Newsroom on its 24-hour number + 44 20 7356 5369 or to Jonathan Moggridge, Director of Communications Director of Communications is a position in the private and public sectors. The Director of Communications is responsible for managing and directing an organization's internal and external communications. , BT North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. on 212 418 7860. All news releases can be accessed at our website http://www.groupbt.com/mediacentre |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion