Cable bows to pressure over Royal Mail IPO probe

Business Secretary Vince Cable has bowed to mounting pressure for an inquiry into the privatisation of the Royal Mail, ahead of a critical report due on Friday.

Former City Minister Lord Myners has been appointed to investigate the way the government conducts IPOs, after the National Audit Office accused it of costing taxpayers £750m on the first day of trading of Royal Mail sahres. The announcement comes shortly before a highly critical report on the privatisation of the company, to be published by the Business Select Committee on Friday. MPs are expected to demand a ban City advisers from buying shares in government privatisations, after the asset management arm of Lazard, the government's key adviser, was also a selected investor in the fl...