Royal Mail Shares Soar

Shares in the Royal Mail have jumped more than 30%.

The value of the firm has been boosted to over £4.5bn, dramatic rise from the pre-flotation pricing of £3.3bn.

Business Secretary Vince Cable, who is a member of the Liberal Democrats dismissed claims the sale had been undervalued, telling BBC Radio that the sharp price rise was no more than "froth and speculation".

The Communications Workers Union (CWU) general secretary Billy Hayes hit out at today's flotation of Royal Mail.

He said: "Privatisation is all about greed". His comments were made as the company's share price jumped by more than a third in the opening minutes of trading.

Mr Hayes said: "The massive jump in the share price confirms that the government and its expensive city advisors got the pricing structure wrong and have undervalued this treasured national institution. The taxpayer has lost out immediately and we all now face an uncertain future for our postal services which will be run for profit instead of public service.

"Privatisation is about greed. I think Vince Cable is one of the cleverest men in the government, but he's made one of the stupidest mistakes in politics on privatising Royal Mail.

"Shares will make no scintilla of difference to postal workers who are far more concerned about their jobs. We expect our members will vote to protect their terms and conditions in our strike ballot next week. It's more important than ever to get protections for jobs security and terms and conditions under privatisation. CWU won't stand idly by; whoever owns the company will have to deal with us and the workforce."

Postal workers protested outside the London Stock Exchange this morning as Royal Mail was floated and trading began on shares. Demonstrators dressed as robbers with swag bags represented how private investors are being allowed to steal public assets, while others wearing Cameron, Osborne and Cable masks firmly pointed where the blame laid.

(CD/IT)