I was completely opposed to the privatisation of the Royal Mail.Today, Vince Cable is due to appear before Parliament’s “Business, Innovation and Skills Committee”(!). The battle’s lost and so, for the most of the public, it’ll only be of academic interest… at best.
However, it will be interesting to hear his take on the following:
1. His justification for seriously under-selling the Royal Mail (floated at 330p, compared with last Friday’s level of 555p… and expected to reach 570p in a year’s time)?
2. The justification for the fund management arms of some of the banks advising on the float receiving a combined 13m shares? If advisers on selling Royal Mail know that colleagues are buyers, what incentive is there to price the shares at the maximum price? SURELY, there’s a conflict of interest? Current profit on 13m shares stands at some £29million! Ridiculous. Scandalous.