Royal Mail sell-off: David Buik on share prices

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.

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