Royal Mail sale ‘robbed’ taxpayer, says Communication Workers Union chief, Billy Hayes
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.The postal workers' union have demanded Vince Cable's resignation following claims that Royal Mail was valued at up to £10bn by a major bank - three times the price the Government sold it for this month.
JP Morgan reportedly advised the Business Secretary that the company was worth between £7.75bn and £9.95bn.
In the end shares were sold at £3.30, valuing the business at £3.3bn. The shares have since leapt in value to around £5.30, suggesting Royal Mail is currently worth more than £5bn.
Billy Hayes, the general secretary of the Communication Workers Union said the business had been undervalued, “robbing” taxpayers of billions of pounds.
He said: “In any other walk of life this would be a sacking offence and we call on Vince Cable to resign.”
The Department of Business said 21 different banks pitched to act over the sale of Royal Mail and the Government opted for the average suggested valuation.
Mr Cable dismissed claims that the company had been sold off too cheaply. He told Sky News: “We are not interested in the spivs and speculators, we are interested in serious long term investors.”
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments