Govt lost £180m on Royal Mail privatisation - report

Carmen Reichman
clock

The government's privatisation of the Royal Mail was underpriced by £180m, a report commissioned by Business Secretary Vince Cable has suggested.

The report, written by former City minister Lord Myners, said shares could have been valued up to 30p more than the flotation price of 330p because of the high level of demand from banks and individuals, according to the BBC. It recommended future government share sales should be more transparent and the pricing set at a later stage. The report undercut previous suggestions by MPs that taxpayers lost up to £1bn in the 2013 privatisation. The probe was ordered by Cable after a National Audit Office review into the privatisation of Royal Mail said too much emphasis was put on rushing...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Infrastructure: A good investment gone bad – and then good again?

Infrastructure: A good investment gone bad – and then good again?

'Infrastructure - a victim of a unique set of circumstances'

Darius McDermott
clock 02 May 2024 • 5 min read
Investment opportunities 'differ by client age group'

Investment opportunities 'differ by client age group'

‘Advisers should consider personal circumstances when it comes to investment’

Isabel Baxter
clock 02 May 2024 • 1 min read
Future of Investment Festival: Our specialist sessions for advisers

Future of Investment Festival: Our specialist sessions for advisers

Future-proofing advice, building sustainable portfolios, all things SDR

Professional Adviser
clock 02 May 2024 • 2 min read