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Selling the Royal Mail

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  • David Parker

Abstract

In October 2013, the Royal Mail (RM) was sold by the UK government through a public share offering. This was the largest privatization by value since the 1990s. The RM is facing competition in its core letters and parcels businesses and the coalition government concluded that its future best lay in the private sector with access to the private capital market. This study contrasts this privatization with large privatizations in the 1980s and 1990s. Significant differences are identified in terms of post-privatization gains to investors, the attitude towards marketing of the shares to the public, the preferential share scheme for employees and the treatment of pension liabilities. This privatization is shown to be particularly poor value for money for British taxpayers.

Suggested Citation

  • David Parker, 2014. "Selling the Royal Mail," Public Money & Management, Taylor & Francis Journals, vol. 34(4), pages 251-258, July.
    • Handle: RePEc:taf:pubmmg:v:34:y:2014:i:4:p:251-258
    DOI: 10.1080/09540962.2014.920197
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    References listed on IDEAS

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    1. Simon Stevenson, 2006. "The abnormal performance of UK utility privatisations," Studies in Economics and Finance, Emerald Group Publishing, vol. 23(3), pages 164-184, August.
    2. Mario Levis, 1993. "The Long-Run Performance of Initial Public Offerings: The UK Experience 1980-1988," Financial Management, Financial Management Association, vol. 22(1), Spring.
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    Cited by:

    1. Stephen Mustchin, 2017. "Public sector restructuring and the re-regulation of industrial relations: the three-decade project of privatisation, liberalisation and marketisation in Royal Mail," Industrial Relations Journal, Wiley Blackwell, vol. 48(4), pages 294-309, July.

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