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Royal Mail sell-off confirmed

[ July 10, 2013   //   ]

Business Secretary Vince Cable confirmed on 10 July that the government will sell Royal Mail for around £2-s billion through a flotation on the London Stock Exchange. Employees would be given 10% of shares for free, and the public will be able to buy shares, although it has been suggested that private sector parcels carries such as DHL would be interested in taking a major stake in the privatised company.

The sale excludes the Post Office counters, which will remain in public ownership.

However, the Communication Workers Union (CWU) has threatened strike action over the issue.

Vince Cable told the House of Commonsthat the sell-off would give Royal Mail management the freedom to focus on growing the business while Business Minister Michael Fallon said privatisation would give the organisation access to private capital.

Royal Mail more than doubled its profits last year, thanks mainly to the boom in online deliveries.