Royal Mail was worth £10bn, said JP Morgan. It sold for £6bn less

One of the world’s largest investment banks told ministers ahead of the Royal Mail flotation that they could sell the postal business for £10bn, around two and a half times more than the government finally received for it.

News of the valuation from JP Morgan re-ignited the huge row over the privatisation with Billy Hayes, the postal workers union leader, claiming a “conspiracy against the taxpayer” and demanding the sacking of Vince Cable as business secretary.

The government sold shares in Royal Mail for 330p each, valuing the business at £3.3bn on 11 October. But the shares rocketed in value by almost 40% that day alone and closed at 529p, making the company worth more than £5bn

Read more: Royal Mail was worth £10bn, said JP Morgan. It sold for £6bn less | UK news | The Guardian.