2.5 billion sell off in Autumn

[POSTMAN]

http://www.thetimes.co.uk/tto/business/ ... 2013_04_14" onclick="window.open(this.href);return false;

Royal Mail is heading for a stock market flotation in the autumn, but at a knockdown price of less than £2.5 billion.

As in the big privatisations of the Thatcher years, the sell-off of the state postal network will give access to shares for all, while 130,000 Royal Mail workers will receive average stakes in the company of up to £2,000 each.

[chooch]

http://www.theweek.co.uk/business/52486 ... ange-float" onclick="window.open(this.href);return false;

[mitzi]

very quiet out there.

[britwrit]

Stupid question but if there is an stock offering, who actually gets the money? The business itself, or the government?

[RobertT]

Stupid question but if there is an stock offering, who actually gets the money? The business itself, or the government?

The government.

[britwrit]

So, basically, an IPO won't get us the private money "we need" to buy all those new PDAs and blah blah blah. All it means is that Royal Mail gets to borrow truckloads of cash and dig intself straight into a huge financial hole. Awesome.

[stephen500]

Was it about £164 million Royal Mail made last year. At that rate it would take ten years for an investor to recoup his investment. And that is before they put any extra capital into the business. Tell me why Royal Mail couldn't borrow on open market already?