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<p>The stabilisation period, also known as a "greenshoe" or "over-allotment"
option, is a market-standard provision that allows the Initial Public Offering's (IPO)
stabilisation manager to provide share price stabilisation (if required) for up to
30 days post-commencement of conditional dealings. In the case of the Royal Mail,
the stabilisation manager was UBS and the stabilisation period ended on 8 November.</p><p>
</p><p>In the engagement letter, the payment of the discretionary fee was linked to
the ending of the stabilisation period. However, we informed the banks involved 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.</p><p> </p><p>We have
not set a rigid timetable for the decision on the payment of the discretionary fee
which remains unpaid.</p><p> </p>
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