Royal Mail was 'underpriced by £180m'

A report revealed that Royal Mail could have been sold for £180m more.

16:42 18 December 2014

A report commissioned by the government has concluded that Royal Mail could have been sold for £180million more.

The finding goes against previous comments by former city minister Lord Myners who stated that the sell-off was executed with “considerable professionalism” and that the taxpayer achieved “significant value.”

In October 2013, Royal Mail was sold for 330p a share and raised nearly £2billion.

Myners said: “We do not believe that a price anywhere near the levels seen in the aftermarket could have been achieved at listing.

“The aftermarket conditions were extraordinary, unpredictable and did not reflect significant value ‘left on the table’ as some concluded at the time. The government and taxpayer achieved significant value.”

The business secretary, Vince Cable, said: “I am very grateful to Lord Myners and his expert panel for this important and insightful report. It contains a number of significant proposals which could make the general process of future sales more transparent.

“I would encourage financial regulators and those bringing companies to market to engage in this debate. In particular they should explore how digital auctions could, in certain circumstances, make the sale process much more flexible.”