David Prosser: Who would want to buy Royal Mail?

[TrueBlueTerrier]

http://www.independent.co.uk/news/busin ... 97487.html" onclick="window.open(this.href);return false;

Outlook In getting through legislation for the privatisation of Royal Mail last week, the Coalition Government achieved a success that has eluded its predecessors for the best part of two decades. And that was the easiest part of the process.


Yesterday's update underlines just how difficult it is going to be to get this privatisation away, even though ministers have already agreed to saddle the taxpayer with Royal Mail's £4.5bn pension-fund deficit – and to write off £1bn of debt owed to the nation.


The first problem is that taking on those liabilities requires State Aid clearance from the European Union, with Royal Mail's rivals already spoiling for a fight. But even assuming it can sweet-talk Brussels, what does the Government think investors will see in Royal Mail, particularly in thecurrent climate for IPOs, which, to put it mildly, is not welcoming?

The picture painted yesterday was of a business in a much sharper decline than many analysts had realised – of a company struggling under the yoke of the universal service obligation and ever-diminishing margins. That's before the costs of reducing the workforce yet further – not to mention the threat of a bitter industrial-relations dispute over job losses.

[Wessex]

I take it that's Cockney rhyming slang.

[postietaz]

thought the pension deficit was nearer 9 billlion????

[DGP1]

thought the pension deficit was nearer 9 billlion????

No, they changed the rules - RPI to CPI which saved them billions

[Wessex]

If RM dont have to repay the billion loan does that mean they can now afford to pay me my colleague shares . :vcfo :ncfo

[barbario]

thought the pension deficit was nearer 9 billlion????

No, they changed the rules - RPI to CPI which saved them billions

And cost us thousands off our pensions.

[Bongos]

thought the pension deficit was nearer 9 billlion????

iTS A LITTLE BIT MORE NOW AS I HAVE JUST TAKEN MY PENSION OUT AND THEY WILL HAVE TO PAY ME FOR THE REST OF MY LIFE I GOT OUT BEFORE THE gOVERMENT GOT THERE HANDS ON IT.

[Big Daz]

If RM dont have to repay the billion loan does that mean they can now afford to pay me my colleague shares . :vcfo :ncfo

Which begs the question could/would RMG afford to pay out CS money if the shares were officially worth something? I reckon they would have claimed they cant afford the shares.

[pants123]

thought the pension deficit was nearer 9 billlion????

No, they changed the rules - RPI to CPI which saved them billions

funny really they seem to change the rules all the time,, those at the top tell us JOE PUBLIC nothing, its no where near as bad as its painted out to be....... those at the top just want more money in their greedy arse pockets, at the working classes expense........ i don't believe a single word MOYA GREENE says,,,, lies lies andl lies.... she will be alright with £142,000 bonus.......... better get it spent Moya times running out, your in your fifties most folk crock it in their seventies...

[barbario]

thought the pension deficit was nearer 9 billlion????

iTS A LITTLE BIT MORE NOW AS I HAVE JUST TAKEN MY PENSION OUT AND THEY WILL HAVE TO PAY ME FOR THE REST OF MY LIFE I GOT OUT BEFORE THE gOVERMENT GOT THERE HANDS ON IT.

The way i read it chum,the pension that your currently drawing can still be effected big time.Alot hangs in the balance thanks to privatisation and the Governments state aid clearance from Brussells.

[blackadder]

if r.m dos get sold off and just say tnt buys rm will they take on the rm pensions or do you have to start again ??

[TrueBlueTerrier]

if r.m dos get sold off and just say tnt buys rm will they take on the rm pensions or do you have to start again ??

The government will take on the historic deficit around March 2012. Royal Mail and its Successors/owners will start with a clean slate from that point and fund it themselves. As members of the pension fund you should see no change to your payments/benefits without consultation from the Pension trustees and the Union, it should be a seamless transfer but we shall see.

[davepat]

Can anyone try and help me on this, do we think that royal mail will be sold off and what would it mean to us all. Why i ask is that i'm considering vr, cos i worry we will lose everything if we are sold off. eg. will we as the workforce be mainly part time, and the vr terms will be statuary only, ie 1 week for every year worked? any help on this as i'm really not sure which way to turn
cheers

[POSTMAN]

100% we WILL be sold off,what happens after that who knows,but it wont be pretty.

[davepat]

that really is my concern, in the wrong hands i can see part only in deliveries