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Royal Mail: Banks 'warned government over share price'

19 October 2013 Last updated at 11:02 BST

The government ignored two banks that valued Royal Mail shares far more highly than they were sold for, according to the Financial Times.

Shares have risen to around £5, up from the price of £3.30 offered when the government sold 60% of the postal service last week.

Joe Lynam reports.