Royal Mail: Pricing of Shares

Lord Forsyth of Drumlean Excerpts

Tuesday 22nd October 2013 Lords Chamber

[Lord Popat]

My Lords, we were given advice on the price for the shares by a large number of institutions. We took into account a recent flotation of a similar organisation in Belgium. We also took a view on the price determined for recently quoted companies in the UK. The price range was between £2.60 and £3.30. We pitched at the higher amount of £3.30. This flotation was very successful despite the difficulties happening in America and the impending strike by the union.

[Lord Forsyth of Drumlean (Con)]

My Lords, will my noble friend confirm whether any of the advisers on the share sale were the same advisers who advised the previous Government to sell our gold at the bottom of the market at a loss to the taxpayer of more than £10 billion?

[Lord Popat]

My Lords, I do not have that information. Our advisers were robustly looked into. Some 21 advisers made a pitch to us. Nine were selected and they advised us at a different stage of the flotation.