Was book building the cheapest and most appropriate method of distribution?

63.  Gilt issues are nowadays issued by price auction. Bidders receive Gilts at the price they bid and the success of a conventional auction is measured by the "Tail" - the range of prices from the average to the lowest price. Eurobonds, sold at a spread to Gilts ("spread product"), are never sold in the UK by auction but are nowadays distributed by underwritten placing or a non-underwritten placing via a book building process. There are other methods of sale but a placing to professional investors allows bonds to be listed on the London Stock Exchange on a concessionary basis with the necessity to publish very limited listing particulars. Both these methods of placing should ensure full placement of bonds.