Royal Mail stock market flotation set to go ahead

[muriel_volestrangler]

The process of selling off a majority stake in Royal Mail may begin on Thursday morning, BBC's Newsnight programme has learned.

Business Secretary Vince Cable announced the government's intention to privatise the postal service through a stock market flotation in July.

But a formal "intention to float" statement may now come before the stock markets open in London.
...
The sale is likely to value the business at £2bn-£3bn, suggesting up to 150,000 staff will receive £200m-£300m in shares.

http://www.bbc.co.uk/news/business-24058194

£2-3bn? That's a bargain for someone, but not the taxpayer:

The Cost of Privatisation
Roy Mayall 10 September 2013

So far the Royal Mail has invested £2.1 billion in its modernisation programme, buying around 36,000 new tracking devices, 30,000 new trolleys and 11,500 new vans, and building new mail centres around the country.

All of this is being done at public expense in advance of privatisation. When the Royal Mail is floated later this year, it is expected to fetch up to £3 billion.

- See more at: http://www.lrb.co.uk/blog/2013/09/10/roy-mayall/the-cost-of-privatisation/#sthash.LctV4tkv.dpuf

[LeftishBrit]

1. Looking forward to the postal service becoming more and more expensive and unreliable!

What will they privatize next? - the air that we breathe?

[muriel_volestrangler]

2. Well, they gave us the 30% increase to 60p last year

so that (a) there'd be a profit already in place (b) the privatised company can delay the next increase and claim it shows they're running it well.