TNT announces interest with Royal Mail

[BELFAST]

TNT announces interest to explore strategic partnership with Royal Mail



TNT has today expressed its interest to explore a strategic partnership with Royal Mail. The publication of the Hooper Commission report today, which sets out a number of critical requirements for a sustainable future for Royal Mail, forms the background of TNT's renewed expression of interest.

Peter Bakker, CEO of TNT, said: ''Royal Mail and TNT have explored partnership opportunities in the past. The views of the Hooper Commission provide a clear framework for the UK postal sector going forward. Assuming the UK government implements these recommendations, I think that exploring a strategic partnership with Royal Mail makes a lot of sense for both our companies.''

Since the Secretary of State for Business announced a comprehensive review of the developments in the UK postal services market last year, TNT has been invited to actively share its views, just like other stakeholders. The emerging views of the Hooper Commission - that focus mainly on the sustainability of the USO and Royal Mail - form a clear frame of reference for the development of the postal sector in the UK. The Hooper Commission indicates the need for a strong strategic partnership for Royal Mail, the resolution of pension liabilities and development of a predictable and stable regulatory environment.

The objective of the partnership would be to help develop Royal Mail into a modern, best-in-class postal operator that combines excellent mail service with solid and sustainable financial performance as part of a broader global network. The scope of a potential partnership would exclude Post Office retail outlets given its public service network function.

TNT's proposal

TNT's proposal to Her Majesty's Government is to enter into discussions on a strategic partnership with Royal Mail with the objective to reach agreement on key terms and conditions for a substantial minority shareholding. TNT's proposal assumes the implementation of the key recommendations of the Hooper Commission that are instrumental to a sustainable future for Royal Mail.


TNT's track record in Mail and Express

TNT is a leader in the postal services sector. TNT's mail division generates revenues exceeding €4.2 billion, employs 85,000 people and delivers more than 7.5 billion addressed items. TNT Post is the universal service provider in the Netherlands, achieving a consistently high next day delivery quality. Over the last five years, TNT has successfully developed a significant presence in postal markets outside the Netherlands.

TNT is the number one operator in both national and intra-European express services and is quickly expanding its leadership position in emerging markets like India, Brazil and China. TNT Express serves over 200 countries, with revenues exceeding €6.5 billion and employing more than 75,000 people.

In the UK, TNT Post handles more than 2.3 billion addressed mail items per year and employs close to 1,000 people. TNT Express employs over 11,000 people and operates 3,500 vehicles out of 70 strategic locations. The combined revenues of TNT in the UK are around €1.6 billion. TNT remains committed to growing its mail and express businesses in the UK.

[Bouncing Souls]

'TNT's proposal

TNT's proposal to Her Majesty's Government is to enter into discussions on a strategic partnership with Royal Mail with the objective to reach agreement on key terms and conditions for a substantial minority shareholding. TNT's proposal assumes the implementation of the key recommendations of the Hooper Commission that are instrumental to a sustainable future for Royal Mail'

Basically we still want to cherry pick all the high value contracts, we still want RM to deliver TNT post at a loss to RM i.e 13p per item, TNT has no interest whatsoever in doing the 'Final Mile'

We want a couple of seats on the board, what we say goes, imagine that, a couple of seats on the board of RM whilst TNT are still their paymasters, wonder were their loyalties will lie? Conflict of interests?
The average Joe has seen no benefit to them through liberalisation of the post as we couldn't give a toss about them (see above)
oh yeah we run the post in Holland, we ain't going to open the door to RM, anything under 50g we have a monoply on. you ain't getting in my son!
we couldn't give 2 hoots about the folk in rural areas, they don't make us money.
We expect to keep winning contracts and any contracts RM do win, we'll get some of their profit anyway, but they won't get a sniff at ours...which has been made on the back of RM final mile delivery con.
Yep they say RM is in Decline but we can't wait to get our claws into them, theres money to be made for the fat cats at TNT
:mfo

[Bouncing Souls]

What an awesome tune to go with it, Sham 69