Royal Mail facing delay on sell-off - report

[fishtank]

http://uk.reuters.com/article/2011/11/1 ... 5T20111114" onclick="window.open(this.href);return false;

Privatisation of Royal Mail will not begin until at least 2013 and might not even be complete before the end of the government's present term, the Times newspaper reported on Monday.

The newspaper cited well-placed sources as saying the state-owned national postal service faces months of regulatory issues, all but ruling out any sale, partial or otherwise, next year.

The newspaper said its sources have expressed doubt that any serious investor could countenance an approach for Royal Mail without the business reporting at least one year's figures under new regulations put forward by industry regulator Ofcom.

The regulator proposed that Royal Mail, which made a 120-million pound loss on its letters business last year, will be able to charge as much as it wants for first-class stamps for letters and parcels it delivers.

However the regulator proposed a cap of 45-55 pence for stamps for second-class letters, to help vulnerable customers.

[arnold cheshire]

the truth is no body wants to buy RM

[eian687]

it should not be sold ITS A SERVICE

[steven100]

It wouldn't be sold until our pension fiasco is sorted. If other postal services fancied buying. Why? they already have it easy.

[TrueBlueTerrier]

It wouldn't be sold until our pension fiasco is sorted. If other postal services fancied buying. Why? they already have it easy.

When it was last being mooted DHL and TNT seemed interested as was a non postal company, (name escapes me at the moment).

My theory is that who ever takes it over will do the Venture Capital Tango. In other words, buy the company relatively cheap say £2bn, use the assets they can for their own business and sell or develop the rest, potential profit at today's prices probably in excess of £10bn.

The surviving mail centres will probably be kept as they are a strategic asset. However, DOs and Distribution Hubs will probably be culled more harshly that RM ever would, bringing about Super DOs with overnight sorters/prepers. Drivers dropping bags to casual walkers on piece rate then delivering the business mail to important high volume addresses. Distribution Hubs would be sold off to Haulage companies.

Its a win win for who ever takes it over. ££££ for asset stripping, instant ££££ profit when pension issue is taken on by government, ££££ for selling DOs, ££££ for savings on employing casual and then a profit when they sell it on.

[eian687]

do Royal Mail have any assets...................seems most properties have been sold off and either rented back or moved to leased properties, vans are all leased

[fishtank]

The newspaper said its sources have expressed doubt that any serious investor could countenance an approach for Royal Mail without the business reporting at least one year's figures under new regulations put forward by industry regulator Ofcom.

Not convinced by that argument at all.
The kind of investors willing to throw that kind of money at RM can do their homework.
They don't want to buy a profitable company at a premium.
They want to buy a basket case at a knock down price with the potential to make a very large profit.

[POSTMAN]

When it was last being mooted DHL and TNT seemed interested as was a non postal company, (name escapes me at the moment).

For some reason that really bugged me,i had to search for it.

Private equity group CVC Partners

[steven100]

Why can't the postman buy over RM. If every postman was to invest £100 a year. This could be done over a 50 year term. And when someone leaves the replacement picks up the £100. Sack all managers and get rid CWU. We could run the company and we could hopefully share all the profits. Pensions would still be a problem though.
We could also sack Higson and co.

[Lincox]

Animal Farm comes to mind Steve100. The strong willed will become the new managers and so the circle of life continues. There will always be managers, some will be great at their job and now where they came from. Others will use their new found position to discriminate, bully and victimise any poor little animal that doesn,t have the guts or strength to fight back. It,s called pecking order, and it aint going away.

[steven100]

Lincox, but don't postman want the rewards. We don't need managers. ie doms etc. Ok we'll still need the Higsons etc to run the our company. If postman invested £100 if we made a 40 million profit you'd get your money back that year. Being a part of you own business drives you to more success.
Embrace my thought, lets revolutionise Royal Mail and our futures .Or is .

[axeman]

Lincox, but don't postman want the rewards. We don't need managers. ie doms etc. Ok we'll still need the Higsons etc to run the our company. If postman invested £100 if we made a 40 million profit you'd get your money back that year. Being a part of you own business drives you to more success.
Embrace my thought, lets revolutionise Royal Mail and our futures .Or is .

Higson mate are you dearranged this guy i wouldn't trust with anything let alone your future He's one thought only and thats for whatever he can screw royal fail for these types fuc* up and move to pastures new without a care or even a thought for royal fail as a company

st100 your thoughts are a self induced illusion ...... you on drugs ?

[subbie]

Hi Steven100

Wow what a timely idea you have posted. If you want to see how flawed it is, just take a look at what is happening in the PO Counters part of the industry, its just what you are advocating, and its going just as badly as others are pointing out it would go for RM.

Animal Farm perfect way to describe the outcome.

Next idea please.

Subbie

[steven100]

No i'm not on drugs. My idea maybe seriously need to fine tuned but do workers really want TNT paying your wages at min wages or do you want wages at least the same we get. Thats the reality that face us(postal workers). 100,000+ workers we could save more mail centres etc.
I'm really serious.

[axeman]

No i'm not on drugs. My idea maybe seriously need to fine tuned but do workers really want TNT paying your wages at min wages or do you want wages at least the same we get. Thats the reality that face us(postal workers). 100,000+ workers we could save more mail centres etc.
I'm really serious.

Confine it to the bin mate and try another alley you quite friendly with the screws are you ?