Royal Mail statement

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Business spokesman Viscount Younger of Leckie repeated a statement made earlier in the Commons on plans to float Royal Mail shares on the stock market, on 10 July 2013.

In the House of Commons Business Secretary Vince Cable announced that 10% of shares will be given to employees, which the government claims will be largest employee share scheme in 30 years.

Staff will have to keep shares for three years before selling and will need to hold the shares for five years to sell without paying tax on the sale.

The sale is likely to value the business at £2bn-£3bn and the government's preferred method of sale is an IPO - a floatation on the stock market - rather than a trade sale.

The government will retain a minority stake in the business - although it has not announced how much.

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