Vince Cable admits for first time he could have sold higher

[TrueBlueTerrier]

Royal Mail privatisation: Vince Cable admits for first time he could have sold off taxpayers' stake for higher price

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Ministers rejected selling Royal Mail at a higher price - as the taxpayer with left with a £1billion loss, it emerged today.

Business Secretary Vince Cable admitted for the first time he considered flogging the Government’s stake for more than 330p a share late on.

In a letter to MPs, he also revealed he looked at holding back shares to offload later.

However, he pressed ahead amid concerns it could deter big investors or the share price would fall.

Yet the plan spectacularly backfired, with a flood of large investors rushing to buy shares and the price soaring.

The price hit 500p today, valuing the postal giant at £5billion - or a massive £1.7bn above the Government’s estimate.

The surge has left taxpayers out of pocket. The Government will eventually get around £2bn for selling a 60% stake in the company.

However, if it had sold the shares at 500p a share, it would have got nearer £3bn.

That said, the taxpayer still owns a 30% chunk of the business (10% has gone to workers) which has shot up in value from £990m to £1.5bn.

Dr Cable defended his handling of the sale, claiming: “Delivering value for money is about more than just the level of proceeds received on day one.”

In evidence to the Business Select Committee, he said the plan was to leave Royal Mail in a “strong, sustainable position.”

That includes encouraging large investors such as pension funds, rather than “spivs and speculators”, to own shares.

Yet it came as an unnamed US hedge fund - of the type Dr Cable wanted to avoid - was believed to have bought a chunk of Royal Mail shares.

Investment bankers Goldman Sachs and UBS recommended the share sale price, with advise from Lazards.

In a letter to MPs, Dr Cable also denied it had under valued Royal Mail’s properties.

Reports say three sites in London which are poised to be turned into housing could be worth £1.5bn.

However, Dr Cable said the figure was £330m based on the company selling the land on to developers.

Dr Cable, along with Lazards, are due to give evidence before the Business Select Committee next month.

[vmaxv4]

Don't like cold callers... But on this occasion ''come in Vinnie take ya coat off...cup of tea,'

[Shambles]

Let's hope Dr. Cable administers some pain relief, I've heard the guillotine can leave a 'nasty Nick' Doof Doof Doof, dannna nanana na nar (Eastenders theme tune)

[Lounge Lizard]

Don't like cold callers... But on this occasion ''come in Vinnie take ya coat off...cup of tea,'

Breakfast ?

[Lincox]

What company in their right mind is going to sell land to a developer for £330m when by developing it themself they can bag £1.5B
I think VC lost his marbles when he became a minister. I used to think he talked some sense when he was just a Liberal Finance adviser.

[mickeymacca]

What company in their right mind is going to sell land to a developer for £330m when by developing it themself they can bag £1.5B
I think VC lost his marbles when he became a minister. I used to think he talked some sense when he was just a Liberal Finance adviser.

He did, I was quite optimistic with him being involved with the Treasury, as a (former) Lib Dem voter. His ego has grown without recognition. A good example of this was when he was presenting an award at the Comedy Awards a couple of years ago (wtf was he doing there in the first place). Anyway he had obviously prepared some funnies which highlighted how bad his judgement is, as they went down like a down balloon, it was cringeworthy. (check it out on youtube if you want to have a laugh)

[UnhappyGremlin]

I must say, I've never been a Lib Dem fan, but I did once think that Cable was a capable and intelligent man.
But, as soon as he got into power, it appeared to desert him.
Suppose that's what happens when you get into bed with that lot.

[foger]

I could have told Vince that a 500 year old company was worth 500p, and anyway the company was priced low so that the big investors like Goldman sachs and Barclays who got the first cut of the cream pie made a pile of dough.Most of those big investors have never seen a Postman.They certainly wouldn't give you the time of day.Later on the 15th of October the public got there offering. I have a feeling some of those politicians have a Swiss bank account.It's all done with smoke and mirrors and froth. Think about that when you are doing your 'door to doors'.

[hantsman]

I could have told Vince that a 500 year old company was worth 500p, and anyway the company was priced low so that the big investors like Goldman sachs and Barclays who got the first cut of the cream pie made a pile of dough.Most of those big investors have never seen a Postman.They certainly wouldn't give you the time of day.Later on the 15th of October the public got there offering. I have a feeling some of those politicians have a Swiss bank account.It's all done with smoke and mirrors and froth. Think about that when you are doing your 'door to doors'.

Don't forget actual postman who got a guaranteed £10,000 allocation if applied for.

[cloherty1976]

I could have told Vince that a 500 year old company was worth 500p, and anyway the company was priced low so that the big investors like Goldman sachs and Barclays who got the first cut of the cream pie made a pile of dough.Most of those big investors have never seen a Postman.They certainly wouldn't give you the time of day.Later on the 15th of October the public got there offering. I have a feeling some of those politicians have a Swiss bank account.It's all done with smoke and mirrors and froth. Think about that when you are doing your 'door to doors'.

Don't forget actual postman who got a guaranteed £10,000 allocation if applied for.

Have not voted for many a year but Vince gave me the £10000 allocation and clegg given me kids free school meals. Think I'll get down and vote the libs! Oh and not forgetting they gave me a £3000 raise in tax relief as well. It's not often you get something from a political party. 3 though wow!

[aiden01]

YOU CAN AFFORD TO BUY 10 GRAND OF SHARES YET YOUR KIDS GET FREE SCHOOL MEALS I COULD,NT AFFORD A POUNDS WORTH AND HAVE TO PAY MY KIDS SCHOOL DINNERS HOW DO YOU DO IT

[hantsman]

YOU CAN AFFORD TO BUY 10 GRAND OF SHARES YET YOUR KIDS GET FREE SCHOOL MEALS I COULD,NT AFFORD A POUNDS WORTH AND HAVE TO PAY MY KIDS SCHOOL DINNERS HOW DO YOU DO IT

No need to shout, suspect somebody was being sarcastic. But don't believe you could not afford a pound? Throw away remark?

Everybody had the same opportunity.

[aiden01]

don,t know too many posties who had 10 grand to spare.

[hantsman]

don,t know too many posties who had 10 grand to spare.

They should have begged borrowed or stole it to buy maximum, that's a saying but true

[aiden01]

don,t know too many posties who had 10 grand to spare.

They should have begged borrowed or stole it to buy maximum, that's a saying but true

QUITE true but I don't like to beg borrow or especially steal.