CVC looks at delivering Royal Mail bid

[TrueBlueTerrier]

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CVC's interest is at an early stage and the firm is believed to be worried about the reputational risk of any deal because the part-privatisation of Royal Mail is so politically sensitive.

The move to sell a minority stake in Royal Mail, led by Lord Mandelson, the Business Secretary, has drawn criticism and any deal with a private equity firm, which are treated with suspicion by many trade unions and Labour MPs, is likely to exacerbate their anger.

CVC already has experience in postal services after buying a 22pc stake in Post Danmark from the Danish state in 2005. It then went on to buy half the Belgian postal service and last year announced a merger with Posten, the Swedish post office. CVC is considered to have played a key role in modernising the postal services. In December, Lord Mandelson accepted a recommendation that Royal Mail should forge a "strategic minority partnership'' with a private company,

Richard Hooper, a former deputy chairman of the communications regulator Ofcom, said that the service, which has lost out on valuable commercial contracts, requires radical action if it is to survive an era of email and mobile telephones. As part of the review, Mr Hooper visited Post Danmark,

TNT, a Dutch firm, was believed to be a front-runner to take a significant minority stakeholding in Royal Mail, investing as much as £3bn for a third of the company. Another interested party is thought to be DHL, the parcel courier, which is part of Deutsche Post.

The plans to privatise parts of Royal Mail have drawn sharp criticism and Gordon Brown, the Prime Minister, faces the possibility of a rebellion by at least 60 Labour MPs. John Prescott, the former deputy Prime Minister, is rumoured to be among those opposed to the plans while Jim McGovern, a ministerial aide in Lord Mandelson's Department for Business, Enterprise and Regulatory Reform (BERR), has already resigned.

Neal Lawson, the chairman of Compass, a Labour pressure group, said: "There is no more potent symbol of our national identity than the Royal Mail."

The proposals are expected to be put to Parliament within weeks and, if passed and a deal is agreed, it would be the first time since the national postal service was set up in the 19th century that any part of it has fallen into private hands.

[carpbarbel]

having looked at their site they would appear very top heavy in management they would not need postpeople to deliver their are enough of them to do it with people left over

[norbert]

having looked at their site they would appear very top heavy in management they would not need postpeople to deliver their are enough of them to do it with people left over

Our dearly beloved chairman :lfo was interested in teaming up with them for a part takeover in 2005 - New Liebour had to introduce the Warwick Agreement as they didn't want any IR trouble close to the 2005 general election .

:lfo was bullish about it saying it didn't faze him as it was down to the shareholders not the Government Now we've retread minister :mfo trying to move the goalposts relying on lies and threats , he's come a long way from the Young Communists , but though the policies go to the right , the mindset stays the same , not the only one of his sort in New Labour either !