The British telecom company BT was under pressure on the London stock exchange on Friday due to Labor’s plans to nationalize part of the company in the event of a possible election victory. Investors fear that in that case they will not get enough money for their shares.
Labor leader Jeremy Corbyn is said to have turned his attention to BT’s network subsidiary named Openreach. Analysts stressed that nationalization rarely works out well for shareholders, although a split could in principle provide value. Operational problems are also feared.
With a nationalization, Labor would like to provide all British with free broadband internet. The party’s nationalization plans are not limited solely to the BT component. Postal service Royal Mail and rail and water companies are also in the sights of Labor. In the most recent polls, Labor is also considerably behind the Conservatives of current Prime Minister Boris Johnson.
The BT share fell by more than 2 percent on the stock exchange in London, before recovering somewhat.