Lloyds Bank just did Royal Mail a huge favour

[TrueBlueTerrier]

Lloyds Bank just did Royal Mail a huge favour- by killing its competition

http://finance.yahoo.com/news/lloyds-ba ... 00276.html" onclick="window.open(this.href);return false;

http://l2.yimg.com/bt/api/res/1.2/qARSuzg1KCNhg_Odms2Reg--/YXBwaWQ9eW5ld3M7cT04NQ--/http://globalfinance.zenfs.com/en_us/Finance/US_AFTP_SILICONALLEY_H_LIVE/Lloyds_Bank_just_did_Royal-cb43f7942a4a1c757c0a68ddceb0b39fRoyal Mail's biggest rival in letter delivery just gave up.

Whistl, formerly TNT Post, announced this morning that it is cutting door-to-door services in London, Liverpool and Manchester and will instead rely on Royal Mail for what it calls "final mile" delivery - getting letters and parcels from local distribution centres to your letter box.

Royal Mail shares leapt almost 5% on the news. Whistl is Royal Mail's biggest competitor when it comes to letter delivery, although Britain's biggest postal service faces much more competition in the parcel market.

Royal Mail has taxpayer-backed Lloyds Bank to thank for knocking out the competition. Lloyds' private equity arm LDC recently decided not to invest in Whistl and, in an email sent to Business Insider, the company blamed this for the scrapping of delivery.

While it's a boost for Royal Mail, it's a disaster for the near 2,000 Whistl employees who currently deliver letters.

Whistl confirmed that it has begun a consultation on redundancies, with Manchester Evening News reporting that many of the employees are on zero-hour contracts meaning they will not be paid during the process. A spokesman for Whistl told Business Insider that zero-hour workers would be paid this week but pay beyond that would depend on negotiations with unions.

It's the second big blow for workers in the delivery business this year. Employees of parcel delivery business City Link were told on Christmas Day they were being made redundant as the business went into administration.

[Phantom]

It goes to show the utter contempt that ceo nick wells (who is a c***!) and his cohorts have for the staff. This decision hasn't happened over night. TNT have been bought out by FEDex and they have said they would cut some of TNT's services. Makes me wonder why they became whitsl now, part of a strategy to get rid of the letter delivery arm.

[pants123]

these people at the top, the elite... as they are so called...

ARE OBSESSED WITH MONEY....... they want more of it, and more....... JESUS CHRIST THERE IS MORE TO LIFE THAN F..KING MONEY...

WHAT IS WRONG WITH THESE FOLK..

[wacko74]

these people at the top, the elite... as they are so called...

ARE OBSESSED WITH MONEY....... they want more of it, and more....... JESUS CHRIST THERE IS MORE TO LIFE THAN F..KING MONEY...

WHAT IS WRONG WITH THESE FOLK..

I disagree... all these people at the top with their ruthless ambition and drive are basically just psychopaths who crave power, control, status and recognition, the fact that they also get lots of money as well is just an incidental bonus.

[deshulme]

PostNL could have quite easily kept the loss making Whistl going. They had just recently sold there stake or shares in TNT which were sold at over 30% market value to FedEx for around $690 million pounds. They didn't need the money from LDC a division of Lloyds Banking Group.

[Phantom]

Maybe Lloyds have Royal Mail shares!!!

[arnold cheshire]

PostNL could have quite easily kept the loss making Whistl going. They had just recently sold there stake or shares in TNT which were sold at over 30% market value to FedEx for around $690 million pounds. They didn't need the money from LDC a division of Lloyds Banking Group.

share holders or government to give money to ?

[TrueBlueTerrier]

Maybe Lloyds have Royal Mail shares!!!

Probably - but guess who shares are due to be sold by the Government soon about £4bn at last count http://www.mindfulmoney.co.uk/investmen ... investors/" onclick="window.open(this.href);return false; - some sort of play to push the selling price in the direction they want.

[borgpicard]

They have not done us a favour, they have no one to deliver their crap, they very quickly dumped us when tnt aproached them in the first place, So therefore THEY HAVE NOT DONE US A FAVOUR