Royal Mail parcels bid

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TNT, the Dutch postal group, is demanding control of Royal Mail’s profitable parcels division as part of a multi-billion pound plan for a stake in Britain’s national postal service.

Its proposals were revealed in an outline offer submitted to the Government during the past few weeks.

But ministers are thought to be unhappy with TNT’s valuation of Royal Mail and they would be reluctant to surrender control of the European parcels arm, which is regarded as a key driver of future growth.

The division, GLS, is headquartered in Amsterdam and employs more than 14,500 people, handling over 1m parcels every day. TNT would integrate GLS with its own parcel service — which would mean Royal Mail would lose control of the operation.

TNT also wants to install some of its own executives on Royal Mail’s board. The scale of its demands are thought to have frightened ministers amid growing concern amongst backbench MPs and unions over their plans to sell a minority stake to an overseas company.

TNT is facing opposition from its own shareholders over plans to buy a stake in Royal Mail. Leading investors fear it would be a distraction.