GOVERNMENT ministers have defended the privatisation of Royal Mail amid questions over whether they were "conned" over the share price.

Business Secretary Vince Cable and Business Minister Michael Fallon faced a grilling by MPs over the setting of the share price, which soared from its opening level of 330p within minutes of trading. The Coalition has been accused of selling the company too cheaply after shares broke through the 500p mark within a week.

Mr Cable told the Business Select Committee that he "categorically" rejected claims that taxpayers had lost out, insisting it would take time for the share price to settle down. Mr Fallon said:"We could not have got a higher price for the 600 million shares."

Royal Mail revealed operating profits nearly doubled to £283 million for the six months to September 29.