Saturday, October 12, 2013

Selling cheap

In the first Royal Mail privatisation under Thatcher, the Post Office bank, a highly successful and innovative bank was sold off at 300-odd million pounds to Alliance and Leicester. Within a year, A and L were valuing Girobank at a billion.

We now know that the present Cameron government in its sale of Royal Mail has also undervalued it at between 650 and 700 million pounds.  A £1 billion profit for investors but prompting criticism that the company had been sold too cheaply. 
They never learn. 

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