Rm Floatation

[Bazile]

http://www.bbc.co.uk/news/business-24294745

so the Government is about to give you the oppurtunity to buy shares in what ' you already own '

Will you be getting your cheque book out ?

[sp1814]

"Daddy, what's a cheque book?"

[sandyRoe]

I didn't join the Thatcher rush to plunder the family silver. I won't have any part of this.

[Old_Geezer]

I've reached an age when I think I need to sell assets on a regular basis, to avoid CGT if nothing else. Adding to them isn't that attractive. Anyway not all do well, if shares bomb, you lose (unless you are not me in which case it is apparently ok to blame government and take legal action for compensation from the taxpayer), but if they do ok then the cost of selling means you are lucky to make much, even though you took all the financial risks.

[Gizmonster]

I'll poss have a dabble ..... as my pops says, "you've got to speculate to accumulate".

[Gromit]

Osborne has got to raise money before the election in 18 months. At the moment he is well short of balancing the books.

Sell RM
Sell search and rescue.
Licenses for 4G

And he is halfway there.

Remember the TSB. Founded in 1810. Flogged off in the 1980s for a pittance. Government had to bail it out in 2008.

I would not be surprised if RM is broken up, the unprofitable bits allowed to go bust, and the country having to bail them out with £billions in 10 years time.

[Bazile]

What 'unprofitable bits ' would be allowed to go bust - gromit ?

[youngmafbog]

Gromit, the govenrment (a labour one) bailed out Lloyds TSB after Brown pretty much leant on them to clear up Fred the Shreds mess. It is highly likely that had they not taken this on they would not have needed it. Attributing it to the TSB is a very long stretch of the imagination.

The RM has had its day, it's like a 7 year old car. Do you peddle it whilst there is some life in it and you will get a fair buck or press on until it collapses and is scrapped either for pennies or you have to pay.

As with SP's "Daddy, whats a cheque book", in not many years "Daddy, what's a letter" will be just as applicable, whether or not it is privatized.

I'm not sure the RM can be categorized as the family silver, more like the knackered silver plated bits.

[ToraToraTora]

yes, what is a "cheque book"? is that what they used in the olden days?

[Old_Geezer]

A cheque book is what is used now. But maybe it's still the salaried earners who have opened a bank account.

[Bazile]

//I'm not sure the RM can be categorized as the family silver, more like the knackered silver plated bits. //

If you want to categorise it as the 'knackered silver plated bits' , then that's only because successive governments over the decades have plundered it's till for it's profits and failed to re-invest in the business .

Added to that , recently the regulator has seen fit to open up the British postal market to foreign companies , without any such recipricol action in foreign markets ; resulting in these companies riding in and cherry picking the profitable bits ; leaving RM to provide a universal postal service .

Despite all that RM reported profits of 440m in the last fiancial year , up from 152m the previous year .

Hardly the 'knackered silver plated bits '

[mikey4444]

Not sure why I, as a British tax payer, should have to buy shares in something that I already own.

We have a pretty good mail service in Britain today, despite the moans of some people. My American friends are always amazed when they come and stay with me, that letters arrive, inside my house, every morning. Speak to people in Holland and they will tell you horror stories of how their mail service is now in tatters.

I predict that within 10 years, Royal Mail will be foreign owned, just like the gas, electric and water utilities are now. Whoever owns it will not be able to continue to offer a universal service throughout Britain, so will need to be bailed out by the subsidies by the Tax Payer, just like the rail industry.

Don't forget all that subsidy goes in the front door from the treasury, and immediately goes out the back door to share holders. That is what subsidy does...it pays the share holders dividends.

Say what you like about Thatcher, and if it can be said over the years, I've said it ! But even she wouldn't touch the Royal Mail.

If this privatisation goes ahead it will be the first step on the road to ruin.