Royal Mail privatisation... Would you?

SnowMan

For anybody else who applied through Sippdeal;

We expect that the allocation of shares for the offer will be announced by HM Government during the evening of Thursday 10 October.

Successful applicants will have their customer accounts credited with new shares by the start of dealing on the London Stock Exchange on Friday 11 October, any balance of cash not used to buy shares after scaling back of the allocation will be returned to Available Cash balances at the same time.

We will be accepting online orders to deal in the new Royal Mail shares from 08.00am on Friday 11 October, please note that no new information will be available until that time.

The new Royal Mail shares will be traded on a conditional basis until Tuesday 15 October, this conditional status means that Royal Mail shares are not eligible for purchase within an ISA until Tuesday 15 October, purchases are permitted within a SIPP or a Dealing Account from Friday 11 October.

Customers who have applied for shares under the offer for sale are not affected by this restriction and can still sell their allocation from within their ISA from 08.00am on Friday 11 October.

doughnutmachine

Fella wrote: »

It's because anyone who can afford to spend £10k on shares is clearly rich and deserves to be punished, Vince Cable says so.

tbh I think a lot of people that were going to invest over 10k wouldn't want to be bothered with £750 pounds of shares...

Financial_Saddler

doughnutmachine wrote: »

tbh I think a lot of people that were going to invest over 10k wouldn't want to be bothered with £750 pounds of shares...

I would have thought that most people applying for £10k+ would have done so on the basis of an expectation of a large scaling- down of their application.
What they didn't foresee was the rather pathetic political posturing opportunity taken by the increasingly absurd Mr Cable.

westy22

The new Royal Mail shares will be traded on a conditional basis until Tuesday 15 October, this conditional status means that Royal Mail shares are not eligible for purchase within an ISA until Tuesday 15 October, purchases are permitted within a SIPP or a Dealing Account from Friday 11 October.

I am not sure that is correct - as far as I am aware neither an ISA nor a SIPP can purchase RM shares during conditional trading.

VfM4meplse

westy22 wrote: »

I am not sure that is correct - as far as I am aware neither an ISA nor a SIPP can purchase RM shares during conditional trading.

I was told that it was possible from 15th Oct 13 though.

Slightly off-topic, but any recommendations for the rest of the funds in the ISA account?

xyz123

so all those who got £749 worth of shares cant sell their shares until tuesday?

msallen

xyz123 wrote: »

so all those who got £749 worth of shares cant sell their shares until tuesday?

Depends how they bought them - i.e. if they bought them through a broker then it depends on whether the broker will allow conditional dealing. (I believe most will)

xyz123

msallen wrote: »

Depends how they bought them - i.e. if they bought them through a broker then it depends on whether the broker will allow conditional dealing. (I believe most will)

Looks like X-O dont! may be they are not classed as broker!

cepheus

"There's no way we will sell Royal Mail 'on the cheap,'" promised the government in its "myth-busters" factsheet. Yet this is precisely what it is doing; the valuation is believed by many experts to be on the embarrassingly low side. Experts from Panmure Gordon say that its lower value estimate of £2.6bn could be undervalued by up to £1.9bn pounds, or over 40%. Labour points out that the valuation does not seem to include up to £1bn of property assets – such as the Mount Pleasant or Nine Elms sites in London. Add to this that Royal Mail has an accumulated backlog of tax credits of about £2.8bn, which means that it is expected not to pay any tax for between five and 10 years. And here is the kicker – not only is this government selling the service significantly under any sensible valuation, it is retaining its biggest liability – pensions. Why wouldn't there be frenzy for its undervalued, no-strings-attached shares?

http://www.theguardian.com/commentisfree/2013/oct/07/royal-mail-sale-privatisation

sabretoothtigger

The real kicker may be the regulation, BT was sold cheap, massive amounts of land and resources but they had the thumbscrews put on and were forced to lower prices every couple years.
RM will retain future pension liability I guess, another bump in the road as the employees will no doubt contest anything less padded then it had in gov