British Telecommunications said yesterday its £5.9 billion sterling (€9.62 billion) rights issue won 89.5 per cent backing from shareholders, leaving it 206 million shares to auction to international investors. The take-up level was above expectations of around 85 per cent and sets a benchmark for other European telecoms companies considering share sales to cut debt. The unsold shares will be auctioned starting today.

Most institutional investors were expected to back the rights issue, although brokers advised BT's 1.8 million private shareholders to avoid it. BT offered investors three new shares for every 10 they owned at a discounted price of 300 pence each.