Coalition government undecided on Royal Mail sale
Despite indications early last week that the Royal Mail will be part privatised it is believed that the Conservative party and the Liberal Democrat party are at loggerheads with regards to what percentage of the company could be sold to a third party. This is a re-emergence of a similar deal suggested by Lord Mandelson a few months ago, which was flatly rejected by the unions, and would suggest that the UK government could again attract the wrath of the unions.
The Communication Workers Union has already signalled that it isn't happy with the proposed deal and we are certain to see more strike activity if the plan is put in place. It would be easy to suggest that union activity will increase under a Conservative/Liberal Democratic government but the truth is that even the Labour Party, at the centre of the union movement, was fighting a losing battle against the unions in the final months of its tenure.
There would appear to be a number of third parties hovering over the Royal Mail and looking to potentially take a minority stake. although what kind of price this would attract remains to be seen. It is also worth noting that the Royal Mail is expected to confirm a pension fund deficit of £10 billion next month, something which will need to be addressed before any potential sale of a share of the business.
Share this..
Related stories
Hedge funds deny blame for banking sector collapse
Hedge funds across the world have today denied being instrumental in the recent collapse of the UK banking sector. There have been rumours and counter rumours of substantial profits from "short selling" which many believe has piled yet more pressure on the sector. However, the hedge funds deny they are to blame instead suggesting that the banking sector has been slow to come forward and clarify ce...
Read MoreConcern and confusion over MG Rover payout
There is concern and confusion over a proposed £12.5 million payout to former MG Rover car workers which was promised by the former directors of the company. Despite the fact that it is five years since the company went under, and the directors agreed to put aside £12.5 million to compensate workers, HBOS has apparently stepped forward with a £23 million debt claim. While the so-called "Phoe...
Read MoreOnline chatrooms in court battle
Nighthawk Energy, an AIM listed company, has today revealed a successful court battle against chatroom companies ADVFN and iii to force the companies to divulge the identity of certain individuals posting alleged "damaging information" online. The company believes it has been the victim of unscrupulous rumours which may or may not have damaged the reputation of Nighthawk Energy. So what does the c...
Read MoreBill Gates, The End Of An Era
After 33 years at the helm of Microsoft, Bill Gates will finally hand over day to day control on the 27th June this year. While he will still continue to work one day a week for the company and retain his position as board chairman, the day to day running of Microsoft will be firmly in the hands of Steve Ballmer the group’s Chief Executive.
Ballmer has been at Microsoft for s...
Should you pay management fees to your stock market adviser?
The subject of investment fees is one which often attracts much criticism and praise in equal measures with more and more people around the UK looking for greater and greater value for money. The growth in the Internet has also offered a different route, often cheaper, to those who have knowledge of UK investment markets and are willing to make their own decisions often without professional advice...
Read More