Royal Mail set to be privatised

<p>Royal Mail will float on the stock market.</p>

The UK government has confirmed it intends to launch a stock market flotation for Royal Mail.

Business secretary Vince Cable insisted that the move is a necessary one if the future of the company is to be secured.

He said: "These measures will help ensure the long term sustainability of the six days a week, one-price-goes-anywhere universal postal service."

However, the stock market flotation of Royal Mail was criticised by the shadow business secretary Chuka Umunna, who described it as a "politically-motivated fire sale".

Under the terms of the government's plan, employees will be given ten per cent of the shares, while institutional investors and members of the public are to be offered the rest.

The Communication Workers Union has announced it is opposed to the move and is set to ballot its members with a view to going on strike.

Royal Mail will take on £600 million of loans from banks as part of its privatisation, with another £800 million available if necessary.

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