BT Pension Scheme Faces £300M Loss on Thames Water Stake
The BT pension scheme has suffered a staggering £300 million loss after writing off its equity stake in Thames Water. Discover how this impacts the future of the UK's largest water company and its potential nationalisation.
Major Financial Setback for BT Pension Scheme
The BT pension scheme has recently reported a significant loss of £300 million due to the write-off of its 8.7% equity stake in Thames Water. This decision comes as Thames Water grapples with a massive £20 billion debt, pushing the company closer to potential nationalisation.
In 2012, BT initially invested in Thames Water, acquiring a 13% stake, but has since reduced its exposure. The pension scheme's spokesperson reassured that the overall portfolio remains well diversified, minimizing the impact of this single investment's challenges.
- Key points to note:
- The pension scheme sold its debt in Thames Water to prevent further losses.
- Thames Water is facing scrutiny over its financial practices and environmental impact.
- Calls for nationalisation are growing, especially with the upcoming leadership changes in the Labour party.