The body which manages hundreds of billions of pounds-worth of state-owned assets is plotting an overhaul of £24bn of assets held by Royal Mail's pension scheme.
I've learned that the Shareholder Executive has appointed an investment consultancy called Inalytics to advise it on how to liquidate billions of pounds of assets held by the fund as the Government moves towards the privatisation of Royal Mail.
My understanding is that many of the assets (in asset classes such as public and private equities, real estate and others) held by Royal Mail's pension fund will be sold over time if the Government receives approval from Brussels to assume the postal operator's multi-billion pound historic pension deficit.
The appointment of an advisory firm to help ministers do this will form an important element of Royal Mail's financial restructuring.
Of course, there will be pressure on ministers to ensure that the timing and valuation of any liquidation process delivers good value for British taxpayers.
Vince Cable, the Business Secretary, wants to secure private sector investment in Royal Mail to help secure a viable commercial future for a company operating in an industry whose revenue base is declining at an accelerated rate.
That said, there's no guarantee that the Government will receive offers which value Royal Mail sufficiently highly to justify selling a controlling stake in the company.
Royal Mail and the Shareholder Executive declined to comment.
