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| Version 2 | Version 3 |
|---|---|
| Royal Mail privatisation 'in the coming weeks' | Royal Mail privatisation 'in the coming weeks' |
| (about 1 hour later) | |
| The government has given formal notice to the stock exchange that it plans to privatise the Royal Mail "in the coming weeks". | The government has given formal notice to the stock exchange that it plans to privatise the Royal Mail "in the coming weeks". |
| It has not decided exactly how much of the service it will sell, but has said it will be the majority. | It has not decided exactly how much of the service it will sell, but has said it will be the majority. |
| Employees will be given 10% of the shares, with the rest being offered to institutional investors and members of the public. | Employees will be given 10% of the shares, with the rest being offered to institutional investors and members of the public. |
| The minimum amount members of the public can apply for will be £750. | The minimum amount members of the public can apply for will be £750. |
| Free shares will be given to 150,000 UK-based Royal Mail employees, who will be able to apply for additional shares under an employee priority offer, with a minimum application of £500. | Free shares will be given to 150,000 UK-based Royal Mail employees, who will be able to apply for additional shares under an employee priority offer, with a minimum application of £500. |
| Industrial action | Industrial action |
| The Communication Workers Union (CWU) opposes the float and is about to ballot its members for strike action. The outcome of the ballot will be announced on 3 October. | The Communication Workers Union (CWU) opposes the float and is about to ballot its members for strike action. The outcome of the ballot will be announced on 3 October. |
| Royal Mail expects CWU members to vote for industrial action, with the first date available for a strike being 10 October. | Royal Mail expects CWU members to vote for industrial action, with the first date available for a strike being 10 October. |
| The government says it will decide how much of the Royal Mail to sell depending on market conditions and how much demand there is for the shares. | The government says it will decide how much of the Royal Mail to sell depending on market conditions and how much demand there is for the shares. |
| More information is available at www.gov.uk/royalmailshares which is also where online applications will be once the offer opens. | More information is available at www.gov.uk/royalmailshares which is also where online applications will be once the offer opens. |
| Private investors will also be able to apply for shares by post or through stockbrokers. | Private investors will also be able to apply for shares by post or through stockbrokers. |
| Royal Mail has announced that "in the absence of unforeseen circumstances" it will pay a dividend of £133m in July 2014, saying it would have paid £200m if the business had been listed for the whole of its financial year. | |
| BBC business editor Robert Peston said that implied that the business was worth around £3bn. | |
| Business minister Michael Fallon sought to reassure people that the six-day-a-week universal service was protected. | |
| "It is the law - it's an Act of Parliament that was passed two years ago and only Parliament could ever change that," he told BBC News. | |
| "I can't think of any political party that would want to reduce the service that we all rely on." | |
| 'Healthy future' | 'Healthy future' |
| As part of the privatisation, Royal Mail will take on £600m of loans from banks, with another £800m available if necessary. This will replace the loans it currently has from the government. | As part of the privatisation, Royal Mail will take on £600m of loans from banks, with another £800m available if necessary. This will replace the loans it currently has from the government. |
| The Post Office was separated from Royal Mail in 2012 and is not for sale. | The Post Office was separated from Royal Mail in 2012 and is not for sale. |
| Business Secretary Vince Cable said: "HM Government is taking action to secure a healthy future for the company." | Business Secretary Vince Cable said: "HM Government is taking action to secure a healthy future for the company." |
| "These measures will help ensure the long term sustainability of the six days a week, one-price-goes-anywhere universal postal service." | "These measures will help ensure the long term sustainability of the six days a week, one-price-goes-anywhere universal postal service." |
| But shadow business secretary Chuka Umunna said: "Ministers are pushing ahead with this politically-motivated fire sale of Royal Mail to fill the hole left by George Osborne's failed plan." | But shadow business secretary Chuka Umunna said: "Ministers are pushing ahead with this politically-motivated fire sale of Royal Mail to fill the hole left by George Osborne's failed plan." |
| "The government has not addressed the huge concerns which remain on the impact the Royal Mail sale will have on consumers, businesses and communities." | "The government has not addressed the huge concerns which remain on the impact the Royal Mail sale will have on consumers, businesses and communities." |