Government to 'begin privatisation of Royal Mail'

The government will sell or float part of the Royal Mail in the autumn, reports suggested on Friday.

The offering is expected to bring in between £3 billion to £4 billion, the Financial Times said.

The FT cited people close to the sale process as saying the government is attracted to a stock market flotation if the financial climate for initial public offerings improves.

A flotation is likely to involve a sale of shares to the public as well as institutions, backed by a marketing effort, according to the article.

Privatisation is likely to begin with a partial sell-off, with the rest sold later, but a full sale at the outset has not been ruled out, the FT said.

Royal Mail employees would get a stake of at least 10 percent when privatisation is completed, while the Post Office network would remain in the public sector and may be mutualised.

Royal Mail could not be reached for immediate comment.