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British PM Cameron comes under pressure over Royal Mail sell-off

Published on Apr 2, 2014 7:59 PM
 
British Prime Minister David Cameron came under pressure in parliament on Wednesday over his government's sale of Royal Mail with the opposition Labour party accusing him of selling the firm off too cheaply to a handful of rich London investors -- FILE PHOTO: AFP

LONDON (REUTERS) - British Prime Minister David Cameron came under pressure in parliament on Wednesday over his government's sale of Royal Mail with the opposition Labour party accusing him of selling the firm off too cheaply to a handful of rich London investors.

The government's handling of the sale of a 60 per cent stake in the 500-year-old state postal operator last October at 330 pence a share has come under renewed scrutiny after the country's spending watchdog concluded the government had set the price too low.

Labour has seized upon the flotation, and the quick profits made by big banks and City investors, to reinforce one of its central arguments ahead of next year's general election - that Mr Cameron's government is out of touch with ordinary voters.

"He sold at 330p and this morning the price was 563 pence," Ed Miliband, Labour's leader, told parliament. "It is basic maths. Not so much the Wolf of Wall Street more the dunce of Downing Street," he quipped, referring to the street where Cameron has his office.

 
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