The government sold a 60 percent stake in the postal operator last year, attracting criticism at the time from rival politicians and trade unions who said the firm had been sold off too cheaply after shares rose by as much as 87 percent following the sale.

On Thursday Cable, who has staunchly defended the privatisation, said that the government should hold onto its remaining shares for the "medium long term" to retain some influence in the way the company is run.

When asked if the government should retain its stake he told ITV television: "Yes, yes I do ... I'm certainly not going to do anything within the foreseeable future."

Cable has previously used the fact that the government still holds shares in the firm to deflect criticism about the rise in share price since the privatisation. Royal Mail shares were last trading at 421 pence, well above their 330 pence debut price.

At the time of the firm's privatisation, employees were given a 10 percent stake in the firm.

(Reporting by William James; Editing by Elaine Hardcastle)