Vince Cable defends Royal Mail sell-off in Commons debate

The business secretary, Vince Cable, has refused to apologise over the government's privatisation of Royal Mail, despite a scathing report from the National Audit Office, which said undervaluing the share sale had cost the taxpayer £750m in a single day.

In a lively debate in the House of Commons, Cable defended the controversial float last October, after coming under fire from the shadow business secretary, Chuka Umunna, and other MPs. "The last thing I intend to do is apologise," Cable said. He insisted that the privatisation had been a success and that there had been a real risk that the flotation could have failed if the shares had been priced higher.

Official Royal Mail valuation 'more than £1bn too low'

Taxpayers could lose out on more than £500m in the controversial privatisation of Royal Mail, Labour has warned.

Chuka Umunna, the shadow business secretary, attacked the government sell-off after a leading City analyst said the coalition had undervalued the 497-year-old postal service by more than £1bn. Nearly two-thirds of the company is being sold.

"It is truly shocking that taxpayers are set to lose out to the tune of half a billion pounds because the government has undervalued Royal Mail, as this [Panmure Gordon stockbrokers] report suggests," he said. "This analysis suggests that the true value of Royal Mail's shares is a third higher than the price the government is getting for its stake."

UK To Privatize Royal Mail This Fall, Prompting Calls For Strike

LONDON — The U.K. coalition government has confirmed plans to privatize the country's 500-year-old Royal Mail this fall.

Business Secretary Vince Cable said Thursday an initial public offering of a majority stake in the postal service was scheduled for the coming weeks.