Sell-off takes shape as banks sound out investors

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Royal Mail sell-off takes shape as banks sound out investors

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Plans to privatise the Royal Mail are taking shape with banks lined up to work on the deal.

Wall Street giants Bank of America Merrill Lynch and Goldman Sachs have both been brought in ahead of a multi-billion pound float, which is expected next year.

Royal Mail says the American giants are sounding out investors to determine how keen they would be for shares in the group.

But it is understood that BoA will be brought in as the lead adviser and Goldman will be appointed as an underwriter to the deal.

Last week Royal Mail confirmed that Barclays is an adviser on the deal, and UBS is working with the Government.

Floating the company – the best outcome for the Government – is still the preferred option.

If successful it would be the biggest privatisation since the Government sold the railways in the 1990s.

But it is understood that more costs need to be stripped out if the firm is to appeal to the widest range of investors.

The company is thought to be worth £2-3billion, which would make it a member of the prestigious FTSE 100 index.

It also emerged yesterday that the Government is accelerating plans to give the company’s 15,000 employees a holding of 10 per cent of the group.