City bets Royal Mail privatisation may fetch £2.83bn

[TrueBlueTerrier]

http://www.thisismoney.co.uk/money/mark ... paign=1490" onclick="window.open(this.href);return false;

City gamblers have put a valuation of almost £3billion on Royal Mail after a spread-betting firm opened a book on the controversial privatisation.

The figure is close to the top of estimates for the sell-off price and would be a fillip to the Chancellor, who will be looking to avoid allegations of a deal on the cheap.

But the figure is only an early indication of City speculators’ expectations. The real figure could yet be derailed, particularly if unions go ahead with threatened strike action.

The postal giant is set to be privatised in the autumn, in a move announced by Business Secretary Vince Cable earlier this month.

City spread-betting firm ETX Capital last week opened a book on Royal Mail, giving investors the chance to make money on the privatisation by taking a bet on its expected flotation value.

On Friday, a spokesman for ETX Capital said it had seen plenty of interest from speculators, with the spread ranging from £2.73billion to £2.83billion.

In spread betting, which is popular with City traders, players gamble on whether a price will be above or below the spread range offered by the bookmaker, and by how much they expect it to differ. The spread moves according to how speculators place bets.

The ETX spokesman added: ‘While there has been a lot of interest from people, we expect the price to be pretty volatile because the situation with the privatisation is.

‘If the strikes materialise, that would obviously affect how people valued the shares.’

Despite a pledge to give postal workers a ten per cent share in Royal Mail, expected to mean a £2,000 windfall for each staff member, the plan is not supported by workers.

This month they protested, while the Communication Workers Union has threatened to strike.

As well as concern over changes to working conditions and the postal service, there are fears that the Royal Mail could fall into foreign hands.

[alanmc]

gambling with our jobs and lives tossers

[Shaman Mao]

And I've got a £10 bet with my DOM that we won't be working Saturdays within 5 years if privatisation goes ahead. Not that he'll be around to pay up anyway!

[borders]

unbelievable really, when you take into account how much our country is in debt - 2 , 3 or even 4 billion is a very small amount in comparison . its an ideological move what ever way they want to dress it up.

[UnhappyGremlin]

No wonder no one has any respects for those lot.
Betting on stuff like this, irresponsible and selfish.
Not to mention the actions of an uncaring and self serving bunch of tossers.

[Martin Walsh]

And I've got a £10 bet with my DOM that we won't be working Saturdays within 5 years if privatisation goes ahead. Not that he'll be around to pay up anyway!

Moya has already confirmed that if Royal Mail or new owners wanted to reduce the USO , it would be based on a 4 day week including not having a service Monday and Tuesday.

[NWpostie]

And I've got a £10 bet with my DOM that we won't be working Saturdays within 5 years if privatisation goes ahead. Not that he'll be around to pay up anyway!

Moya has already confirmed that if Royal Mail or new owners wanted to reduce the USO , it would be based on a 4 day week including not having a service Monday and Tuesday.

Have you got a linky to that, I would be interested to read that, I knew there was some idea of reducing to 5 days but to 4 was not expected even confirmed that it would be sanctioned, but then going off the Dutch privatisation experiences, where sub contractors ( house wife, students etc) deliver from their homes 3 days out of 5.

[andy g]

Well if our CEO is saying things like that the CWU should be jumping on this and making a lot of noise to the public !
For me its all rather quiet but with the summer break for MP's and the holiday season upon us I understand but we need some info to the membership to counter attack all this propaganda from RM !!

[db]

And I've got a £10 bet with my DOM that we won't be working Saturdays within 5 years if privatisation goes ahead. Not that he'll be around to pay up anyway!

Moya has already confirmed that if Royal Mail or new owners wanted to reduce the USO , it would be based on a 4 day week including not having a service Monday and Tuesday.

There is no way any business would support this! No mail on a Monday!!

[Danelectro]

Well if our CEO is saying things like that the CWU should be jumping on this and making a lot of noise to the public !
For me its all rather quiet but with the summer break for MP's and the holiday season upon us I understand but we need some info to the membership to counter attack all this propaganda from RM !!

I agree! If she has been quoted or heard suggesting its a possibility then for christ sakes HQ stick out a poster for the union board! Are the CWUs printers in administration ? is the photo copier f****d? are they tattie printing LTBs?!!
...meanwhile my hand is in agony scrunching up their A4 brainshite.

[andy g]

I sure I heard that RM were publicly saying they were looking into delivering 7 days a week obviously over a 5 day week !!
Not sure where this 4 day week comes from !! The public would not tolerate that !!

[Martin Walsh]

There is a difference between the USO and a seven day service. The USO is an obligation whereas Royal Mail's desire to deliver seven days per week is an ambition.

Moya Greene in talks with the Union has said Royal Mail could go for a 4 day week if it choose to cut the USO. However Royal Mail has also declared they would want to deliver parcels on a Sunday in the future.

[blackadder]

There is a difference between the USO and a seven day service. The USO is an obligation whereas Royal Mail's desire to deliver seven days per week is an ambition.

Moya Greene in talks with the Union has said Royal Mail could go for a 4 day week if it choose to cut the USO. However Royal Mail has also declared they would want to deliver parcels on a Sunday in the future.

wouldnt surprise me at all if the uso will go, there be 3 deliverys a week. mon, wed and fri doing 1 delivery, tue, thur and sat doing another delivery. sun for packets and specials

[Cut Off King]

A copy of thr RM proposal should be leaked to the press, a 4 day week delivery proposal would have Mr. Middle Class from Surrey writing a letter to the Times and his MP.

Also play this up to the CBI & small shops etc. NO POST on SUN / MON / TUE.......