27 September 2013

Flogging it on the cheap

Is the coalition government so desperate to have a successful privatisation?  Obviously yes (with the added bonus that it will make millions for their chums in the City).  The Guardian reports:
The government is racing to push through the £3.3bn privatisation of Royal Mailbefore postmen and women have the chance to walkout on strike against the "great British flog off".
Formally kicking off the sale, Cable said the government will sell the shares at between 260p and 330p, valuing the business at £2.6bn-£3.3bn. The sale could swell Treasury coffers by more than £2bn.
Cable said he had been "encouraged by the interest shown by potential investors so far", which is why the government has increased the amount of shares it may sell from at least 50% to up to 70%.
Members of the public will be able to apply for a minimum of £750 worth of stock online, at the Post Office or through brokers until 8 October. The shares will pay a 7.7% dividend before April.
Guess how many companies in the FTSE 100 pay a dividend that high?  Not a single one.
Are we, the taxpayers, being screwed?  Damn right we are.

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