Cover of MoneyWeek magazine issue no 662

Sun worshippers

18 October 2013 / Issue 662

Profit from solar power

PLUS:

  • What to do with your Royal Mail shares
  • This woman is the real threat to the global economy
  • The stellar rise of Africa's richest man

Excerpt

Merryn Somerset WebbEDITOR'S LETTER

Merryn Somerset Webb

Royal Mail: Another botched sell-off

In the late 1970s, the word ‘privatisation’ didn’t really exist. If anyone ever spoke of listing the UK’s many nationalised firms (they generally didn’t), they used the word ‘denationalisation’. That changed fast.

‘Privatisation’ – seen as a more positive description – was first brought to public attention in a Financial Times article in July 1979, says John Littlewood in his book The Stock Market: 50 Years of Capitalism at Work. It didn’t take long to grab the public imagination.

By November, 5% of BP had been sold into the market. By 1981, pretty much everything was seen as up for grabs: stakes in Ferranti, British Aerospace, Cable & Wireless, and the National Freight Corporation had all been sold.

However, it was in 1982 when the state – for the first time – attempted a full privatisation. Not just a sale of its holding in a company (it owned only 51% of BP in the first place), but of a whole company.

• Read the full editor’s letter here: Royal Mail: Another botched sell-off