Only a decade ago, share buybacks were rare in much of Europe. Their rise, which owes much to legal changes, is often seen as a sign of a clearer focus on shareholder value. The trouble is that current rules do not always seem to ensure the equal treatment of all equity investors.

Take TPG, which is buying back 4.4 per cent of its capital directly from the Dutch government, its largest shareholder. The buyback might look like a mutually beneficial way of reducing the Dutch postal company's share overhang. However, it has helped the government secure a better price for the larger stake that it is simultaneously selling to institutional investors. The state, rather than other longer-term investors, is reaping most of the benefit from avoiding a sharp but temporary drop which might have given TPG an opportunity to buy back its shares at an even lower price. What makes the transaction especially unpleasant is the fact that the government retains its “golden share”, in an attempt to keep its veto over hostile takeovers.