Dutch TNT to sell or spin off mail division

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TNT NV, the Dutch post and express mail company, said Thursday it is planning eventually to sell or spin off its mail arm, which represents a large share of its business.

TNT did not set a time frame for the strategic change. However, it said it does not see the mail arm, which was once the Netherlands' state-owned mail company, as compatible with its other operations.

TNT said in a statement ahead of its annual shareholder meeting that it will begin legally separating the mail business and surveying potential buyers for interest. It will also consider a separate stock market listing for the division.

"A final decision...will require preparation time and depends on a full assessment of all possible alternatives," the company said in a statement.

TNT shares rose 5.3 percent to euro22.75 ($30.25) in Amsterdam after the announcement.

The company has significant mail delivery operations in Germany, Britain and Italy, and express operations worldwide.

Dutch media cited France's La Poste as a potential buyer.

TNT competes strongly with Deutsche Post and the German company's DHL express delivery arm. A previous attempt by TNT to form an alliance with Britain's partly liberalized Royal Mail foundered on opposition from the government.

In February, TNT's express arm reported euro106 million ($141 million) in fourth quarter operating profits while the regular mail arm had operating profits of euro229 million.

Sales at the company's Dutch mail arm have been stagnant or declining for years, even as its express business has grown. The company said Thursday those trends continued in the first quarter.

It forecast that first quarter operating profit will rise in both divisions.

TNT is due to report earnings May 4.

Dutch postal workers employed by TNT voted in March to accept 3,500 layoffs in exchange for small raises for the remaining workers over the next few years. The company employed 23,000 people at year-end.