Anorak

Anorak | Yes, Of Course Royal Mail Was Sold Too Cheap But Not For The Reason You Think

Yes, Of Course Royal Mail Was Sold Too Cheap But Not For The Reason You Think

by | 24th, October 2013

PA-17863106

WAS Royal Mail sold on the cheap? Yes. But not for the reason you might think.

When they announced that they were going to privatise Royal Mail there were all sorts of shrieks and moans that this would just put cash into the pockets of the hedge funds. You know, the fly by night boys just looking for a quick turn on tyhe shares. And of course that’s not what the government wanted at all: rather, we want stable long term investors who will be with the company for years.

So, when the hedge funds all applied for shares in the share offering they were told to naff off. Or allocated very many fewer than they had asked for :

TCI, for its part, applied for a whole presidential suite of rooms £200m of shares and was allocated just £1m. Many other hedge funds were similarly shunned.

OK, so what? We’re not exactly going to cry for

You have already read 1 premium article for free today
Access immediately the premium content with Multipass

Or come back tomorrow



Posted: 24th, October 2013 | In: Money Comment | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink