Investors smell rich pickings but share price could fall if

[TrueBlueTerrier]

Royal Mail privatisation: Investors smell rich pickings but share price could fall if staff man picket lines

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The Government should be ashamed for rushing through the sale before workers get to have they say on the plans

The stampede of investors desperate to snap up Royal Mail shares tell you everything you need to know about the sale of the postal giant.

They smell rich pickings, with the firm handed on a plate by the short-sighted Government.

Not only have regulators opened the way for price hikes but the taxpayer is lumbered with the firm’s historic pension millstone.

And the more big investors pore over the business, the more they realise it could deliver healthy windfalls.

And it is likely to be those same small group of investors who decide the fate of so many.

The Government should be ashamed for rushing through the sale before workers get to have they say on the plans.

As it is, the share price, which is expected to rise to begin with, could fall when and if staff man the picket lines.

Royal Mail is spooked enough by the threat it is offering staff £300 a pop “bribes”, as union puts it, to not go on strike.

But, the truth is, the damage will then have been done, with the company already having been sold off. With little hope of going back.

The Government says privatisation is the only way forward for the company.

Doubtless they said the same about the railways, energy and water companies.

The truth is, blinkered ministers were defiant about completing the deal, whatever the consequences.

But this doesn't mean the end, far from it, for the taxpayer will still own a sizeable minority in the business.

We must use that - along with the shares owned by staff - to hold the company to account and fight the forces of profit obsessed overseas investors who want to make a fast buck.

[houseoflords]

It's too late for Royal Mail, it will soon be owned by overseas investors. R.I.P

[chooch]

yesterdays Mirror article - RM privatisation - 10 things you need to know :-

point 5) The Government is selling off just over half of the firm, with 70 per cent of shares reserved for City banks and ‘institutional investors’ such a hedge funds

negates the concluding two lines of the article:-

But this doesn't mean the end, far from it, for the taxpayer will still own a sizeable minority in the business.

We must use that - along with the shares owned by staff - to hold the company to account and fight the forces of profit obsessed overseas investors who want to make a fast buck.

doesn't it?

[TrueBlueTerrier]

As far as I know The government are selling between 50%+ 60% of the shares of which 70% are going to institutional investors and 30% to the Public.

[hubbahubba]

As far as I know The government are selling between 50%+ 60% of the shares of which 70% are going to institutional investors and 30% to the Public.

Skynews reporting that ALL small investors will get AT LEAST £750 allocation,and that will eat into the shares put aside for the banks/hedgefunds etc?

[meweavy]

As far as I know The government are selling between 50%+ 60% of the shares of which 70% are going to institutional investors and 30% to the Public.

so will the company in effect will be owned by the shareholders to do whatever they wish with?
as the majority share will be on sale then could we infact be owned by another company who snapped up a majority of the shares,ie TNT?could this in effect make all our current contracts with royal mail be worthless and could this new company who buys the majority shares not recognise cwu as our union?
seeing as its only royal mail who recognises cwu as its union?

im wondering worse case scenario that the majority shares get sold to a big investor ie tnt,they dont recognise our contracts with royal mail and they also dont recognise cwu or the terms and conditions we are fighting for as these are royal mails terms and conditions that will be agreed with the cwu after the inevitable strike.

in effect leaving us without a union,without agreed terms and conditions and all on minimum wage and zero hours.
could this be possible if the majority shares are being sold?

[Spartacus]

As far as I know The government are selling between 50%+ 60% of the shares of which 70% are going to institutional investors and 30% to the Public.

Skynews reporting that ALL small investors will get AT LEAST £750 allocation,and that will eat into the shares put aside for the banks/hedgefunds etc?

An awful lot of small investors are on a quick cash grab and will sell any shares they buy as soon as they show a profit, probably next week, who do you think is going to buy them?

[clashcityrocker]

as the majority share will be on sale then could we infact be owned by another company who snapped up a majority of the shares,ie TNT??

I think there are laws and rules and regulations that prevent a takeover by stealth.