13:32 27 September 2013
Royal Mail, which is scheduled to be listed on the London Stock exchange next month, is valued at £2.6bn to £3.3bn according to the government. In a statement, the government added that it will sell between 40.1per cent and 52.2per cent of the Royal Mail under its privatisation proposal. Meanwhile, 10per cent of the shares priced between 260p and 330p, will be given to about 150,000 eligible UK-based Royal Mail employees.
The company will be listed on the London Stock Exchange long before a possible strike could happen. On Friday, postal workers will start to vote on whether to stage a strike to oppose the plan.
Meanwhile, business Secretary Vince Cable said that the privatisation will help improve the company. "This will give Royal Mail access to the private capital it needs to modernise, as envisaged under successive governments and enshrined in law by Parliament two years ago."
The Communication Workers Union (CWU) on the other hand, have criticised the government for its action. CWU general secretary Billy Hayes said: "It seems remarkable that the prospectus is being issued on the same day that postal workers are being sent ballot papers for strike action."
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