This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.theguardian.com/business/2013/sep/12/government-float-royal-mail-stock-exchange-privatisation
The article has changed 6 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Government to float Royal Mail on stock exchange 'in the coming weeks' | Government to float Royal Mail on stock exchange 'in the coming weeks' |
| (35 minutes later) | |
| Vince Cable has fired the starting gun on the sale of Royal Mail by formally announcing the government's intention to float the company on the London Stock Exchange in "the coming weeks". | Vince Cable has fired the starting gun on the sale of Royal Mail by formally announcing the government's intention to float the company on the London Stock Exchange in "the coming weeks". |
| "This is an important day for the Royal Mail, its employees and its customers," the business secretary said. "HM Government is taking action to secure a healthy future for the company. These measures will help ensure the long-term sustainability of the six days a week, one-price-goes-anywhere universal postal service." | "This is an important day for the Royal Mail, its employees and its customers," the business secretary said. "HM Government is taking action to secure a healthy future for the company. These measures will help ensure the long-term sustainability of the six days a week, one-price-goes-anywhere universal postal service." |
| The sell-off of the 497-year-old postal service is the most contentious privatisation since British Rail two decades ago, and is forcefully opposed by the unions, who are meeting with the Royal Mail chief executive, Moya Greene, on Thursday morning to once again voice their anger at the "great British flog-off". | The sell-off of the 497-year-old postal service is the most contentious privatisation since British Rail two decades ago, and is forcefully opposed by the unions, who are meeting with the Royal Mail chief executive, Moya Greene, on Thursday morning to once again voice their anger at the "great British flog-off". |
| The Communication Workers Union (CWU) plans to disrupt the sale process by holding a strike ballot on 20 September, which could lead to a nationwide strike by 10 October. It would be the first nationwide postal strike since 2009. The union is also pushing for a better pay deal, after rejecting a 8.6% pay rise over three years. | The Communication Workers Union (CWU) plans to disrupt the sale process by holding a strike ballot on 20 September, which could lead to a nationwide strike by 10 October. It would be the first nationwide postal strike since 2009. The union is also pushing for a better pay deal, after rejecting a 8.6% pay rise over three years. |
| Billy Hayes, general secretary of the CWU, said 96% of Royal Mail staff oppose the sell-off, which "not even Thatcher dared do". | Billy Hayes, general secretary of the CWU, said 96% of Royal Mail staff oppose the sell-off, which "not even Thatcher dared do". |
| Margaret Thatcher, who privatised British Gas, British Airways, British Telecom and dozens of other state-owned institutions in the 1980s, famously refused to countenance a sale of Royal Mail, saying she was "not prepared to have the Queen's head privatised". | Margaret Thatcher, who privatised British Gas, British Airways, British Telecom and dozens of other state-owned institutions in the 1980s, famously refused to countenance a sale of Royal Mail, saying she was "not prepared to have the Queen's head privatised". |
| Lord Heseltine and Lord Mandelson both subsequently tried but failed to sell the company, in the face of intense opposition from MPs. The sale of Royal Mail was approved by parliament in the 2011 Postal Services Act. | Lord Heseltine and Lord Mandelson both subsequently tried but failed to sell the company, in the face of intense opposition from MPs. The sale of Royal Mail was approved by parliament in the 2011 Postal Services Act. |
| Labour attacked the government for "pushing ahead with this politically motivated fire sale of Royal Mail to fill the hole left by George Osborne's failed plan". | Labour attacked the government for "pushing ahead with this politically motivated fire sale of Royal Mail to fill the hole left by George Osborne's failed plan". |
| Chuka Umunna, the shadow business secretary, said: "This is taking place despite opposition from a huge coalition including the Conservative Bow Group, the Countryside Alliance, the National Federation of Subpostmasters, the cross party BIS select committee as well as Royal Mail employees themselves. | Chuka Umunna, the shadow business secretary, said: "This is taking place despite opposition from a huge coalition including the Conservative Bow Group, the Countryside Alliance, the National Federation of Subpostmasters, the cross party BIS select committee as well as Royal Mail employees themselves. |
| "The government has not addressed the huge concerns which remain on the impact the Royal Mail sale will have on consumers, businesses and communities, but ministers are ploughing on regardless." | "The government has not addressed the huge concerns which remain on the impact the Royal Mail sale will have on consumers, businesses and communities, but ministers are ploughing on regardless." |
| The union opposes the potential £3bn flotation despite the government promising 150,000 postal staff a 10% stake in the company – worth up to £2,000 each – for free. The government also promised staff a further £13.3m in dividend payments in the first year and promised a "progressive dividend policy" in subsequent years. | |
| The public will also be able to buy shares via stockbrokers or directly from the government via postal or online applications. Members of the public will have to buy at least £750 worth of stock, while Royal Mail employees will have preferential access to more shares if they spend at least £500. | The public will also be able to buy shares via stockbrokers or directly from the government via postal or online applications. Members of the public will have to buy at least £750 worth of stock, while Royal Mail employees will have preferential access to more shares if they spend at least £500. |
| The government has not yet decided exactly how much of the company it will float on the stock exchange with the size of the stake sold to be "influenced by market conditions at the time of the transaction, investor demand and the objective to ensure that value for money for the taxpayer is achieved". | The government has not yet decided exactly how much of the company it will float on the stock exchange with the size of the stake sold to be "influenced by market conditions at the time of the transaction, investor demand and the objective to ensure that value for money for the taxpayer is achieved". |
| Greene said: "Our strategy is delivering a revitalised company, with a unique UK, multi-use network through which we are proud to deliver the universal postal service for all UK citizens. | Greene said: "Our strategy is delivering a revitalised company, with a unique UK, multi-use network through which we are proud to deliver the universal postal service for all UK citizens. |
| "This network and our strong brand, coupled with the high service quality delivered by our people enable us to take full advantage of the growth in UK e-commerce to further enhance our pre-eminent parcels business. Combining this UK presence with our pan-European parcels business GLS, should result in a financial profile that combines revenue growth and margin progression to underpin strong cash flow generation." | "This network and our strong brand, coupled with the high service quality delivered by our people enable us to take full advantage of the growth in UK e-commerce to further enhance our pre-eminent parcels business. Combining this UK presence with our pan-European parcels business GLS, should result in a financial profile that combines revenue growth and margin progression to underpin strong cash flow generation." |
| Goldman Sachs and UBS are lead advisers on the sale of shares. | Goldman Sachs and UBS are lead advisers on the sale of shares. |
| Royal Mail traces its roots to a forerunner set up by Henry VIII in 1516. | Royal Mail traces its roots to a forerunner set up by Henry VIII in 1516. |
| Our editors' picks for the day's top news and commentary delivered to your inbox each morning. | |
| Our editors' picks for the day's top news and commentary delivered to your inbox each morning. Enter your email address to subscribe. | |
| Our editors' picks for the day's top news and commentary delivered to your inbox every weekday. |