ABSTRACT
The Telecommunications Bill received royal assent on 19 April 1984 and the licence defining BT’s duties was published on 26 June. At the start of August, BT plc was established and the DG OFTEL took up his duties. The Department of Industry had set out the Government’s principal objectives for the flotation of BT in its early planning as: (1) an overall perception that the flotation had been successful, requiring BT to be a financially sound, free-standing enterprise, (2) disposal of the Government’s controlling shareholding as soon as possible, (3) maximum net proceeds from the sale, (4) correct pricing of the issue to avoid extensive profit making by stock market stags, and (5) the achievement of broadly based share ownership, including employees and telephone subscribers.1 The Department was aware that achieving each of these objectives would require some compromises, for example between disposing of a controlling shareholding as soon as possible and maximising the net proceeds from the sale.
