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

Big games, big names… and smaller companies

Big games, big names… and smaller companies

'Brazil should be looking to the future rather than to the past'

Gabriel Sacks
clock 22 June 2026 • 4 min read
Why should investors back China in the worldwide robotics race?

Why should investors back China in the worldwide robotics race?

The race to identify Asia's hidden gems

Xin-Yao Ng
clock 19 June 2026 • 5 min read
UK small-caps – down and out or ready for a rope-a-dope?

UK small-caps – down and out or ready for a rope-a-dope?

'Our faith is rooted in our own in-depth research and direct engagement with businesses'

Eustace Santa Barbara
clock 19 June 2026 • 5 min read