Shares in the Royal Mail have been priced at 330p but no private investor who applied for shares
will get more than 749.10 pounds-worth - and those who applied for more than 10,000 pounds will get nothing. The share price values the postal service at 3.3bn pounds, the government confirmed last night. Private investors who applied for shares in the privatised giant will receive 227, worth 749.10 pounds at the 330p price - but those who wanted more than 10,000 pounds-worth in the heavily over-subscribed float have been dealt a heavy blow, The Daily Mail reports.
David Cameron is failing to get a grip on profiteering energy companies, Ed Miliband said yesterday, as SSE became the first of the "big six" utility providers to raise its prices - slapping an average of £106 a year on its customers' bills. The Labour leader, who has made energy prices a key policy battleground, said firms were "ripping off customers". Economists, meanwhile, warned that the UK's fragile economic recovery could be in jeopardy as household income is hit by what is likely to be the first in a series of utility bill price rises, The Scotsman explains.
Big banks and investors are preparing contingency plans to deal with the potential impact on the $5tn "repo market" of the US government missing a payment on its bonds, even as Republicans propose a six-week reprieve for the debt ceiling limit, the FT says.
BT is back in the consumer mobile phone business after signing a partnership deal with EE under which the former national monopoly will return to wireless, more than a decade after it sold off the O2 network. From next year, by renting space on EE's masts, BT will be able to offer its customers 4G smartphone connections bundled with broadband, landline calls and pay television. By mirroring the Virgin Media model, BT could gain an edge over BSkyB, which does not offer mobile, The Guardian writes.
Mortgage lending has bounced back to levels not seen since before the financial crisis, driven by demand from buyers with small deposits. The rise is likely to fuel concerns over the effect that the second phase of the government's Help to Buy scheme could have on the housing market that was launched at banks this week. The number of mortgages written in September topped 68,000, according to a report by e.surv, the surveyor owned by LSL Property Services, The Times says.
George Osborne has squeezed an additional £250 million a year out of the mobile phone industry after Ofcom revealed a plan to more than quadruple the fees that companies have to pay to use the nation's airwaves. The move, which is proposed to come into effect next year, has been on the cards since 2010, when the telecoms regulator was instructed by the government to review the fees, which were substantially lower than in other countries, The Times reports.