Royal Mail share price slides on chairman resignation

on Jan 29, 2015
Updated: Oct 21, 2019

Royal Mail’s (LON:RMG) share price tumbled at the opening bell this morning after chairman Donald Brydon announced he would step down later this year. The postal services firm said in a statement today that the search for a successor had begun and the firm expected Brydon to remain in the role until at least the summer when it holds its annual general meeting (AGM).

Brydon, who has chaired Royal Mail’s board since 2009 and oversaw the company’s controversial privatisation in October 2013, said that he was “proud of what Royal Mail has achieved as a company in the last six years”. “Our transformation is well underway and we are now a FTSE 100 listed company. I feel that now is the right time for me to make this decision.”,” he added.
Royal Mail’s share price opened more than one percent down this morning. As of 08:11 GMT, the stock was trading 1.62 percent lower at 430.50p. The slump follows an upbeat start of the week. On Monday, the postal service rose almost three percent, climbing to the top of the FTSE 100 leaderboard, with its stock underpinned by speculation about a possible Dutch tie-up bid (Royal Mail share price tumbles after bid talk-fuelled rally).
According to the Financial Times, the 17 analysts projecting 12 month price targets for the company have a median target of 440.00p, with a high estimate of 675.00p and a low of 350.00p. As of 27 January 2015, the consensus forecast amongst 25 polled investment analysts covering Royal Mail had it that investors should hold their position in the company.
As of 08:29 GMT, Thursday, 29 January, Royal Mail share price is 437.80p.

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