Royal Mail valued between £2.6bn and £3.3bn

Business minister Michael Fallon has defended the government's decision to sell shares in the Royal Mail, arguing that the business "needs private capital".

His comments came as it was announced that the company is to be valued between £2.6bn and £3.3bn when it is listed on the London Stock Exchange next month.

"This is a huge day for Royal Mail", Mr Fallon told BBC Breakfast.