Royal Mail profiteers quietly cashed in

Many of the “priority investors” in Royal Mail, brought in supposedly to remain long term, stable holders of the privatised service, quietly sold millions of their shares over the summer.

The 16 investors caused controversy for the Business Secretary Vince Cable earlier this year, as many of them were precisely the kind of short-termist hedge funds the minister had pledged would not make a fast profit from the sale of the public-owned postal system.

All priority shareholders were given big stakes in the company at the flotation price of 330p a share – a valuation that came under huge criticism as the share price rocketed from the first day they began trading. Since their peak at 618p, they have come down to about 440p amid concerns about competition eating away at its lucrative urban deliveries business and a regulatory inquiry in France.

Read more: Exclusive: ‘Priority investors’ sell Royal Mail shares – Business News – Business – The Independent.