Royal Mail Share Sale ‘A Debacle’

The postal workers' union has described the share sale of Royal Mail, (RMG) as a "debacle".

Stocks in the company have almost doubled in value since they went on sale and the Communication Workers Union (CWU) has called for the government to halt payments to the banks that advised on its valuation.

The CWU's general secretary, Billy Hayes, stated that hundreds of thousands of pounds worth of taxpayers' money has been lost as a result of Royal Mail being undervalued.

Stocks in the firm went on sale at 330p but have since risen to nearly 600p, resulting in major gains for those who invested in the company.

Mr Hayes said: "At the very least the institutions which advised the government should not receive any further payments, which are discretionary."

He added that the government ought to also think about claiming back fees paid for "shoddy advice" that has cost the taxpayer money.

The share price of Royal Mail is slightly down in early trading this morning (November 21st). At 08:19 GMT, its stocks were down 0.74 per cent for the day.

Find up to date information on the FTSE 100 and spread betting strategies at City Index

Disclosure: FX Solutions assumes no responsibility for errors, inaccuracies or omissions in these materials. FX Solutions does not warrant the accuracy or completeness of the information, text, graphics, links or other items contained within these materials. FX Solutions shall not be liable for any special, indirect, incidental, or consequential damages, including without limitation losses, lost revenues, or lost profits that may result from these materials.

The products offered by FX Solutions are leveraged products which carry a high level of risk to your capital with the possibility of losing more than your initial investment and may not be suitable for all investors. Ensure you fully understand the risks involved and seek independent advice if necessary.