Privatisation of RM a £1bn rip off for the taxpayer

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Moosferatu
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http://rt.com/uk/172032-royal-mail-shares-taxpayers/
http://www.bbc.com/news/business-28250963

Oh, privatisation is about cost-cutting and efficiency? I thought it was about selling everything off to your mates.
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Quady
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I bought it.

Who am I mates of?
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Farm_Ecology
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This isn't suprising, despite the mantra, privatisation almost always leads to decreased effeciency, and a loss for the tax-payer.

It's like Thatcher all over again.
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Quady
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(Original post by Farm_Ecology)
This isn't suprising, despite the mantra, privatisation almost always leads to decreased effeciency, and a loss for the tax-payer.

It's like Thatcher all over again.
How was it a loss?
We made money.
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username1221160
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If I was asked to value a government asset for privatisation, I would undervalue it and buy up some of the shares myself or advise those I know to buy them. Of course people who work in finance would never do a dishonest thing like that.
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Marcum
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An argument those in favour of privatisation will sprout is that is increases competition. In reality, all I have seen is TNT N.V. replace the Royal Mail in my area. No one in my area is able to form their own postal service and selling off a public asset under the pretence of competition is a guise to make rich people even richer; it is of no benefit to the people of this country.
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Rakas21
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(Original post by Moosferatu)
http://rt.com/uk/172032-royal-mail-shares-taxpayers/
http://www.bbc.com/news/business-28250963

Oh, privatisation is about cost-cutting and efficiency? I thought it was about selling everything off to your mates.
Actually I do believe privatization will be great for the RM, especially if they can automate. It will also be great for us since we still own 30%.

I do agree that it was underpriced at a P/E ratio of 5 in a bull market. That said if it was overpriced all the relatively normal investors would be whining.
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Pussy Galore
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(Original post by Moosferatu)
http://rt.com/uk/172032-royal-mail-shares-taxpayers/
http://www.bbc.com/news/business-28250963

Oh, privatisation is about cost-cutting and efficiency? I thought it was about selling everything off to your mates.
It seems that you are confused about the arguments for privatization, cost-cutting/efficiency refers to the running of the business.
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Pussy Galore
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(Original post by Marcum)
An argument those in favour of privatisation will sprout is that is increases competition. In reality, all I have seen is TNT N.V. replace the Royal Mail in my area. No one in my area is able to form their own postal service and selling off a public asset under the pretence of competition is a guise to make rich people even richer; it is of no benefit to the people of this country.
No the main argument was that it would allow royal mail to acrew a larger investment as the government was unable to fund investment in Royal mail, hence it was floated to raise capital from the financial markets.
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Marcum
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(Original post by Pussy Galore)
No the main argument was that it would allow royal mail to acrew a larger investment as the government was unable to fund investment in Royal mail, hence it was floated to raise capital from the financial markets.
I didn't assert what I believe to be the main reason, I was making a somewhat biased observation.
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Quady
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(Original post by Pussy Galore)
No the main argument was that it would allow royal mail to acrew a larger investment as the government was unable to fund investment in Royal mail, hence it was floated to raise capital from the financial markets.
Since the money raised didn't go back into the business (and was never due to) I don't see how that was an arguement...
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