Taxpayers 'lost £1bn' on Royal Mail IPO

The government acted on poor advice and let its fears of industrial action by the postal service's workers drive the IPO, rather than consider what the proper value for the business was, a damning report from MPs on the Business, Innovation and Skills select committee has found. The MPs also questioned the value for money of government advisers such as Lazard, according to the BBC. It said these firms had failed to gauge demand for shares at higher prices. After the floatation, business minister Vince Cable described the sharp jump in share price as “froth”. But Labour MP and commi...