British Steel also has loans from banks at 3% over sterling Libor. The newly formed British Steel spent this on plant and assets, much of it bought below book value. In the case of British Steel, this strategy very nearly worked. British Steel was privatized by Margaret Thatcher’s Conservative government in 1988. The Conservative government faces an awful choice: allow British Steel to fail, with the loss of up to 25,000 jobs, or swallow its pride and nationalize it.

Source: Forbes May 24, 2019 00:44 UTC