§ 55. Mr. Cockeram
asked the Chancellor of the Exchequer if he will make a statement on the outcome of the sale of the second tranche of shares in Cable and Wireless plc.
§ Mr. Moore
The offer for sale by tender of 100 million ordinary shares in Cable and Wireless plc, on behalf of the Government, closed on Friday 2 December. Applications were received from the public for 77,531,000 shares, including 27,506 striking price applications for 15,196,600 shares and were allotted in full at the minimum tender price of 275p. The balance of 22,469,000 shares will be taken up by the underwriters at the same price. Further details are included in two press notices issued by the Bank of England on Friday 2 December, copies of which have been placed in the Library. £1 a share was payable on applicaton; a further £1.75 a share will be payable on 17 February. The net proceeds of the sale after expenses of about £12.5 million, including about £6.5 million in VAT and stamp duty, will be some £262.5 million. The costs of the sale will be met from the Contingencies Fund, in advance of approval of a spring Supplementary Estimate.