LONDON, Nov 8 (Reuters) - British lawmakers investigatingwhether the sale of shares in the Royal Mail postalservice was correctly valued have summoned bankers from acrossthe City of London to give evidence, a government source said onFriday.
An 69 percent rise in the firm's share price since Oct. 11,when Britain sold a majority stake in the near 500-year-oldfirm, has provoked criticism from unions and oppositionlawmakers that the company had been sold off too cheaply.
Bankers from Citigroup, Deutsche Bank, JPMorgan and Panmure Gordon, none of whom worked on the flotation, have been asked to appear before aparliamentary committee to discuss their valuations of RoyalMail, a source with knowledge of the committee's plans said.
A date for the session had not yet been decided.
Since the sell-off local media have reported that someinvestment banks, including those invited to speak to thecommittee, had valued the company at above the 330 pence pershare it was eventually sold for.
The committee has no statutory powers but its hearings couldreignite the political debate surrounding the sale, which endeda decades-long debate about whether the firm should be sold offat all. Before the sale, the government faced public oppositionand the threat of strike action from workers.
Government ministers have defended the valuation given toRoyal Mail and say the pricing should be judged over the nextsix months to allow the initial market volatility to settledown.
The source said UBS and Goldman Sachs,which managed the initial public offering, had also been askedto give evidence to the Business Innovation and Skillscommittee.
The minister in charge of the sale, Vince Cable, and Lazard, the investment bank advising the government, arealready due to appear before the committee on Nov. 20.
Citi, UBS, JP Morgan and Deutsche Bank declined to comment.No one at Panmure Gordon or Goldman Sachs was immediatelyavailable to comment.