BT Shareholders Face Second Call Deadline

As the second call on BT shares approaches, approximately 1.5 million investors must pay their due amount by March 1 or face a forfeit of their shares and repayment of their original investment. The call notice, combined with a new certificate, will be sent to shareholders by February 23 or 24, with a deadline for payment on March 1.

Key Takeaways:

• The second call on BT shares is due on March 1, with a payment amount of £1.40 per share for most investors.
• Shareholders who opted for the discount rather than bonus shares in their original application will be called at £1.30 per share.
• Payment must be made by March 1, but late payments will not result in severe consequences.
• Shareholders who can no longer afford to pay the second call can sell their shares before February 11 to avoid a forfeit.
• Selling shares in a nominee account may require a "tail-swallowing" exercise to meet the call on the remaining shares.
• Shareholders can send the new certificate, signed on the back and accompanied by a note requesting a sale, to initiate the selling process.
• Commission fees for selling shares vary depending on the brokerage, with shares worth over £2,000 charged at a rate of 1%.

Statistics:

• Approximately 1.5 million people bought shares in the BT offer.
• The call notice will detail the amount of £560 due for a typical holding of 400 shares, unless the shareholder opted for the discount.
• The deadline for selling shares in partly-paid form is February 11.
• The dividend on partly-paid shares is 6.65p per share, net of basic-rate tax.
• The share price now stands at about £2.
• The commission fees for selling shares through The Share Centre range from £10 (up to £1,000) to 1% (up to £2,000).

Sources:

• The Sunday Times, 1994
• The Share Centre, PO Box 1000, Tring, Herts HP23 4JR