Royal Mail shareholder boss is ‘locust’

Banks have been accused of undervaluing Royal Mail sales ahead of IPO (PA)

A hedge fund run by a businessman once described as a “locust” by an embittered rival has emerged as the largest private shareholder in Royal Mail.

The Children’s Investment Fund has taken a 5.8 per cent stake in the group following its privatisation earlier this month. The fund was founded by Chris Hohn, a 46-year-old known as a generous philanthropist but damned by the former CEO of Deutsche Börse, Werner Seifert, for his part in scuppering a previous business deal.

The holding will be seen as a blow to the Business Secretary, Vince Cable, who had insisted that Royal Mail would be sold to long-term “blue chip” investors.