Vince Cable: 'High risk of changing Royal Mail valuation'

The Business Secretary, Vince Cable, has told MPs that the share price for the sale of Royal Mail was designed to ensure long-term investors were not scared off.

Widespread criticism that the floatation price of 330 pence was too low has been fuelled by the fact it has now risen to 560 pence.

Appearing before the Business Innovation and Skills Select Committee, Mr Cable said he was advised that, "there were very high risks attached to changing the valuation".