Nothing worse than a full time quarterback. Yes Royal Mail was sold too cheaply. That in hindsight is now obvious. What is ridiculous is the now unavoidable media circus as to why Vince Cable got it so wrong. Is the man who basked in his prediction of the Euro crash of 2008/9 being hoisted by his own petard.
Perhaps worth debating what competence Cable has to make judgements on the value of Royal Mail. An organisation lest we forget that for 20 years has been a noose around successive governments.
No Minister or group of Ministers born into politics in the last few decades could be expected to have a skill set in corporate finance. Is this not why they relied heavily on a handful of banks and god only knows how many corporate finance advisors and Consultants at enormous cost to the tax payer to guide them through this experience.
Remember too the timing of this sale. Right on the fringes of the darkest recession this country has seen for 100 years. I don’t believe we were in an environment that could drive bullish valuations.
The question here for me is did Vince Cable and his team deliberately price the Royal Mail cheaply to ensure a successful flotation and for what benefit or did they follow the advice given by their advisors?