The starting price was unknown, indeed if investors offered to buy there was no guarantee either of a successful bid or a profitable purchase. If the general public wanted to take a punt at the UK Postal industry they had to be aware that the cost of the shares would be between 260p and 330p each and the price they paid would be completely unknown until the very day of the sell off.
What does this mean?
Well, imagine walking into your local supermarket to buy a pint of milk and being faced with a label on the shelf reading something like “This product may contain nuts and will cost between 43p and 62p depending on consumer demand, best of luck and we hope you reach the checkout!
Signed, your pal Vince”
It’s even worse of course if you are a UK postal worker. Vince Cable’s sell off capitalises on the fact that 149,632 employees of the 540 something year old business have been awarded £2,200 worth of free shares.
Some doubt if a deal which ties the Post Office employees into a three year retention of share certificates before being allowed to sell is fair.
It’s a bit like saying “here’s two grand worth of milk Jess, mind you don’t spill it all over your grubby paws!”
Postman Pat’s cat, whatever his name was, would have licked his paws with glee.