Media playback is unsupported on your device

Royal Mail sell-off: David Buik on share prices

7 October 2013 Last updated at 14:01 BST

There has been a last-minute dash to buy shares in Royal Mail thanks to reports that the company is undervalued.

The government announced last month that each share would be worth between £2.60 and £3.30, after the company was valued at £3.3bn.

Former City trader David Buik told the Daily Politics that ministers Vince Cable and Michael Fallon had done "an excellent job and should not be criticised for undervaluing it grossly".

He said the shares could end up being oversubscribed by ten times, and valued at as much as £3.90 rather than the £4.50 suggested by a colleague at City firm Panmure Gordon.

More from the Daily and Sunday Politics: Watch full programmes from the last seven days via BBC iPlayer; 'like' us on Facebook page or 'follow' us on Twitter

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.