Royal Mail shares 'undervalued'

There are concerns that Royal Mail has been undervalued as investors rush to buy shares in the company ahead of tomorrow's midnight deadline. Labour said the sale was "a dream" for City speculators but a nightmare for the taxpayer.

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Umunna: Taxpayer 'shortchanged' by Royal Mail sale

The Government is selling Royal Mail short by "pressing ahead" with its current sale, despite selling it at a "huge undervalue", the shadow business secretary said.

Chuka Umunna told Daybreak Royal Mail was valued at "between £2.6-3.3 bn" and endorsed by City brokers.

He warned the sale was becoming "a dream" for City speculators but a nightmare for the taxpayer.


Rush to buy Royal Mail shares as company 'undervalued'

Investors have been rushing to buy shares in Royal Mail ahead of tomorrow's midnight deadline, hoping to enjoy instant profits amid reports the company has been undervalued.

Investors have until midnight tomorrow to buy shares in Royal Mail. Credit: Press Association

The shares have been priced at between £2.60p and £3.30p but are expected to rise in value when the company floats on the stock market.

The company is currently valued at £3.3 billion but analysts at Panmure Gordon say it could be worth as much as £4.5 billion, the Daily Telegraph reported.

The Government is selling up to 62 percent of the business, with a 10 percent stake being handed for free to Royal Mail employees.

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