Was Royal Mail sold too cheaply?

[TheDaddy]

Originally Posted by Hugh

"High rollers like pension funds" that pay the pensions of ordinary retired people.......

Yes ordinary retired Australians in the water companies case, that leveraged debt upon said water company, didn't pay any tax, didn't do much re infrastructure and put the bills up by a third. Sound like.people you'd want to do business with?

---------- Post added at 14:57 ---------- Previous post was at 14:55 ----------

Originally Posted by Osem

Yeah, we wouldn't want our pension funds to make money would we. That way we can all retire on a healthy diet of fresh air and blame those evil Tories for that too...

It's not our pension funds that own them but carry on

Originally Posted by TheDaddy

Yes ordinary retired Australians in the water companies case, that leveraged debt upon said water company, didn't pay any tax, didn't do much re infrastructure and put the bills up by a third. Sound like.people you'd want to do business with?

---------- Post added at 14:57 ---------- Previous post was at 14:55 ----------



It's not our pension funds that own them but carry on

http://www.bbc.co.uk/news/business-24488144

Mr Cable said: "You get an enormous amount of froth and speculation in the aftermath of a big IPO [initial public offering] of this kind.

"The bulk of the shares have gone to long-term institutional investors, stable investors, some overseas investors, but mainly British pension funds and insurance companies who are there for the long term.

[TheDaddy]

Originally Posted by Hugh

http://www.bbc.co.uk/news/business-24488144

Course they are Vince just like the water and power companies

http://news.sky.com/story/1152622/ro...-to-get-shares

George done his friends another favourr probably but what the hey no one cares so onto the next thing. I'm getting less and less interested in politics by the day and can see the next general election being the first in my adult life where i won't bother voting.

[Osem]

If George was doing his friends a favour he'd have favoured larger share applications.

[TheDaddy]

Originally Posted by Osem

If George was doing his friends a favour he'd have favoured larger share applications.

He did that's why 70% of the shares weren't available to the public.

http://news.sky.com/story/1151131/ro...mall-investors

Originally Posted by Osem

If George was doing his friends a favour he'd have favoured larger share applications.

Originally Posted by TheDaddy

He did that's why 70% of the shares weren't available to the public.

http://news.sky.com/story/1151131/ro...mall-investors

from TD's previous link on this page...

http://news.sky.com/story/1152622/ro...-to-get-shares

That decision may prove to be contentious because some British private investors are likely to be excluded because they placed orders for more than £10,000-worth of Royal Mail shares.

Ministers are expected to argue that those who placed orders for more than £10,000 were professional rather than private investors, although observers pointed out that many of them - understood to number in the handful of thousands - were likely to be core Conservative voters.

Seems not to be helping his 'friends'[/quote]

[TheDaddy]

Originally Posted by Hugh

from TD's previous link on this page...

http://news.sky.com/story/1152622/ro...-to-get-shares
Seems not to be helping his 'friends'

[/QUOTE]

Hugh he's helping his very best friends

http://www.dailymail.co.uk/news/arti...il-shares.html

and the very last couple of lines were telling to, british funds lost out to sovereign wealth funds from abroad, fantastic, what were you saying again Vince?

[Osem]

Helping his mates, selling it too cheap, blah, blah, blah. Whatever he'd have done some people would be whining. The price these shares are currently trading at has nothing to do with the fundamentals of the business and the fact that major pensions funds and investment companies have bought into the issue is a very good thing for the business and millions of ordinary pension holders and savers whose funds/returns have been having a pretty hard time in recent years. Don't let that spoil the anti-Govt. agenda though eh...

Originally Posted by Osem

Helping his mates, selling it too cheap, blah, blah, blah. Whatever he'd have done some people would be whining. The price these shares are currently trading at has nothing to do with the fundamentals of the business and the fact that major pensions funds and investment companies have bought into the issue is a very good thing for the business and millions of ordinary pension holders and savers whose funds/returns have been having a pretty hard time in recent years. Don't let that spoil the anti-Govt. agenda though eh...

I think the best thing for ordinary people and businesses will be how the Royal Mail performs post-privatisation. If it's sold off cheaper than it perhaps should have been then that's not great, regardless of how it helps investment funds, but it's not the worst thing in the world. However the Government will be judged long term on the effects of privatisation.

In the Times today, it said that most of the trading was in small amounts (personal buyers).

[buckleb]

It doesn't matter what the share price will be in 3 months time, it's what they could have been sold for when they were issued. It's glaringly obvious that they were sold off too cheaply. However, It's easy to say that the price was set to help Tory 'friends', but it's more likely that the price was set low to ensure that they sold, because after all, politicians' reputations are far more important than little things like getting value for money.

As with previous privatisations, the shares will eventually end up with the big institutional investors. As with previous privatisations, we will find ourselves with a cartel of price-fixing companies.

[Nidge41]

Sir Paul Ruddock, Lansdowne's former chief executive, was also awarded a knighthood last year after donating £500,000 to the Conservative Party.

Now where have we seen that before??

Originally Posted by Nidge41

Now where have we seen that before??

Perhaps it was here or here.....

[Uncle Peter]

With the buy limit in place on these shares spread bets can be a very lucrative path to tread. You can make a ton of cash if you're smart.