ROYAL MAIL SALE PROMPTS REVIEW
A review has been launched into the process for selling Government assets following controversy over the privatisation of Royal Mail.
Former City Minister Lord Myners will chair a panel of experts to look at alternatives to the Initial Public Offerings (IPOs) as well as looking into the so-called "book building" process used ahead of a share sale to gauge investor demand.
The review, launched by the Business Department, was one of the recommendations made by the National Audit Office in its report into the Government's sale of Royal Mail last November.
The department said it will inform future decision-making in the disposal of shares owned by government.
Business Secretary Vince Cable said: "I have asked Lord Myners to conduct this review, following the recommendations of the National Audit Office, to help me assess whether changes are needed to the current system Government operates for the sale of its assets.
"Lord Myners is uniquely qualified to carry out this work, with a background in government and the City. I look forward to reviewing his findings and recommendations in due course."
The review follows controversy over the £3.3 billion sell-off of Royal Mail, which sparked complaints that the coalition sold shares too cheaply.
The Government initially priced Royal Mail shares at 330p each, but they immediately increased in value, leading to attacks on the Government for allowing City investors to cash in at the expense of taxpayers.
The Business Secretary has always rejected claims that the Government sold off Royal Mail too cheaply.
The Business Select Committee will publish a report on the privatisation later this week.
