Posties could take delivery of Royal Mail shares in float

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The Independent Online

Royal Mail staff could end up owning a tenth of the group when it becomes the biggest privatisation since the 1980s, according to reports over the weekend.

The Government and Royal Mail advisers from investment bank UBS are thought to favour selling Royal Mail shares on the London Stock Exchange but they would have to finalise a stock deal for staff before the sell-off was delivered.

It is possible that posties will end up getting the shares for nothing, though at the very least they should be offered incentives in an effort to spread employee ownership and quell worker concerns over privatisation.

The flotation would be a huge boon to the stock market, which has been so depressed since the credit crunch started in summer 2007 leading to a number of companies pulling plans to trade their shares publicly. However, the FTSE 100 has rallied sharply this year and should Royal Mail boss Moya Green put her stamp of approval on a listing soon, equities could once again be viewed as a solid investment.