Royal Mail on verge of bidding for Dutch postal service PostNL!

[POSTMAN]

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Speculation is rife that Royal Mail’s chief executive Moya Greene will soon deliver the national carrier’s first major acquisition since its controversial flotation, at an undervalued 330p, in October 2013.

It could yet be a Christmas cracker, but word is it will now be rubber-stamped early in the new year.

The shares rose 5.1p to 448.9p on hot gossip it is on the verge of bidding €5 a share for Dutch delivery and postal service PostNL, whose shares traded almost 5 per cent higher at €3.23 on the Dutch bourse. Germany’s Deutsche Post is also said to be interested.

Up until now Royal Mail’s bolt-on deals have been small beer. It bought London-focused same-day delivery service eCourier for peanuts and acquired cloud capabilities through its purchase of shipping and parcel data management company NetDespatch for an undisclosed sum.

Valued at nearer €2billion, PostNL would help Royal Mail address the growing revenue challenges created by dramatically reduced mail volumes following the shift from addressed letters to the parcels market buoyed by the boom in online shopping.

The Government sold its remaining 13 per cent stake in Royal Mail at 455p a pop in October, with the final 1 per cent gifted to Royal Mail’s eligible UK employees, taking the total stake in the business owned by workers to 12 per cent.

Proceeds raised from sales of all the Government’s shares totalled £3.3billion. The Government and dear old Vince Cable in particular faced extreme criticism for pricing Royal Mail far too low at its IPO at 330p after they rocketed to £6-plus at the beginning of 2014.

[5plusbonusball]

A hell of a lot of whistl letters came through us over christmas for the first time, maybe buy them out?

[wacko74]

Does anybody know why the PostNL share price fell off a cliff in May 2011 and never recovered?

[TrueBlueTerrier]

Does anybody know why the PostNL share price fell off a cliff in May 2011 and never recovered?

Their CEO quit in April of 2012 citing difficulties he had with the board which probably kept it down, but in April 2011 PostNL demerged from TNT Express

[wacko74]

Thanks for that TBT, on the face of it, it doesn't look like a very exciting or potentially profitable acquisition for RMG to make... but I'm sure our betters know what they're doing