- Under-price sell off could have cost taxpayer billions
- Government offered certain firms a ‘priority’ deal
- Fidelity Worldwide gave £975,000 to Conservative Party
- Hedge fund run by Osborne’s best man also cleaned up
One of the ‘priority investors’ offered cut-price shares in the government’s botched privatisation of Royal Mail are a major donor to the Conservative Party. Filings with the Electoral Commission reveal that asset management firm Fidelity Worldwide have given nearly £975,000 to the Tories.
Business secretary Vince Cable had promised to secure “a core of high-quality investors” who “would be there in good times and bad” but the Independent revealed today that many of the shares offered through his department’s ‘priority’ route ended up in the hands of speculators.
The news comes after Scrapbook revealed earlier this month that a hedge fund run by George Osborne’s best man had secured profits of £210,000 PER DAY — then totalling £36 million — on the deal.
Before the IPO — and their status as priority investorstors being revealed — Fidelity led the charge on hyping up the stock, with an analyst writing on their own website:
“It has been many years since investors have been so excited about an IPO. Not since lastminute.com in 2000 have so many people been talking about a company joining the stock market.”
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