Ian Murray – 2014 Parliamentary Question to the Department for Business, Innovation and Skills

The below Parliamentary question was asked by Ian Murray on 2014-06-18.

To ask the Secretary of State for Business, Innovation and Skills, with reference to the Answer of 1 May 2014, Official Report, column 782W, on Royal Mail, what link was established in the engagement letter between the payment of the discretionary fee and the ending of the stabilisation period; and what targets or deadlines were set in the letter.

Michael Fallon

The engagement letter between the Department for Business, Innovation and Skills and the syndicate of banks involved in the initial public offering indicated that the payment of the discretionary fee would be determined 10 days after the end of the stabilisation period and paid 5 days after that.

As I said in my previous answer (1 May 2014, Official Report, column 782W), we informed the banks that a decision would not be taken in the timeframe set out in the engagement letter given the volatility of the Royal Mail share price after the IPO. The share price remains volatile.

We have not set any timetable for the decision.