Goldmans and UBS are set to steer the listing of Royal Mail

Goldman Sachs and UBS have been chosen to oversee the planned flotation of the Royal Mail later this year.

The stock market listing, the largest UK privatisation in two decades, is expected to value the postal operator at about £3bn.

Michael Fallon, the Business minister, insisted "all options" remained open for the Royal Mail. He said: "It is important that we are in a position to move ahead swiftly with our chosen route once we take the final decision.

"Given the lead time and preparatory work involved in readying an IPO, the appointed banking syndicate will work to make sure we are ready to proceed when the time comes and will be able to deliver strong, high-quality investor demand to ensure a successful IPO."