Goldman Sachs predicts redundancies at postal service

[TrueBlueTerrier]

Goldman Sachs admits share price will ALMOST DOUBLE and predicts redundancies at postal service

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In a note to investors, the bank said modernisation would “facilitate head count reduction” and “deliver further margin improvement”

The taxpayer could have lost £1.7billion after a bank that told the Government to sell Royal Mail on the cheap nearly doubled the postal firm’s price tag.

Mega-wealthy Wall Street giant Goldman Sachs advised the ­Government to flog a big chunk of the taxpayers’ stake in the postal giant at 330p a share.

Yet, in a startling admission of how wrong it was, the bank today advised investors that Royal Mail’s share price would settle at 610p in a year’s time.

Analysts also predicted job losses would boost profits.

The taxpayer made just under £2bn from the controversial sale. If the shares had been sold at 610p, the taxpayer would have made £3.66bn – just under £1.7bn more.

Goldman Sachs is already reeling from Dairy Mirror revelations that it made money from brokering deals in Royal Mail shares while also advising the Government.

The firm’s new valuation will pile pressure on Lib Dem Business ­Secretary Vince Cable to launch an inquiry into the botched fire sale after this week ruling one out.

Goldman Sachs set its target price 24 hours after Royal Mail announced that its half-year profits surged 150% to £233million.

The Communication Workers Union said: “Who have they been working for all along? Themselves and their clients or the Government and taxpayer, who paid them handsomely for their ‘expert’ advice?

“Vince Cable can no longer dismiss this simply as ‘froth’. When will ­ministers act to put right the robbery of public assets at the hands of highly paid city advisers?

“This scandal will continue only to grow unless action is taken.”

Adrian Bailey, chairman of the Business Select Committee, said: “It’s quite incredible.

“It must have been aware that the company was worth considerably more when it gave the advice.”

In its note, Goldman Sachs said modernisation would boost ­productivity and “facilitate head count reduction”, which would “deliver further margin improvement”.

It predicted Royal Mail’s profits would soar to £757m by 2016.

[TrueBlueTerrier]

Profit is now ♔

[5plusbonusball]

Dairy mirror revelations!

[doylie02]

doing kill-offs, breaking down cardboard boxes and moving yorks from one place to another!!
thats all ours do

[El-Bandito]

doing kill-offs, breaking down cardboard boxes and moving yorks from one place to another!!
thats all ours do

Couldn't put the managers job description any better. It's the future! Our majority shareholders have seen it also. Merry Christmas one and all.