Royal Mail’s instant billions a temptation for Canada Post
It must be an awful temptation for Canada Post. Suddenly the dowdy, old, money-losing Royal Mail is a private company worth a cool $7 billion. Not only is the figure more than anyone expected, it is $2 billion more than it was valued at just yesterday.
The sudden jump in value is a source of some controversy. That’s because the owners of the 500-year-old mail service — that is, the people of the U.K. — only got about five billion.
When the new stock started trading early Friday morning, demand was so strong that shares soared, making the new shareholders very happy indeed.