Private shareholders to be locked out of Government’s £1.5billion Royal Mail sale

‘Banks and City pension funds are to get preferential treatment in the £1.5billion sale of Royal Mail, leaving private investors empty-handed, The Telegraph can disclose.

The sale of the Government’s remaining 30 per cent stake in Royal Mail was unveiled in the House of Commons by George Osborne, as part of a bid to raise £4.5billion by March next year.

Whitehall sources said the Government was likely to offer the shares at a small discount to the market price large City institutions to keep the costs of the flotation down.

The banks and City investors will then be able to sell on the shares to small private investors at a profit.’

Read more: Private shareholders to be locked out of Government's £1.5billion Royal Mail sale