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
Alex Salmond the eternal optimist?
As Alex Salmond sets off on a high visibility attempt to persuade Lloyds Bank to relocate to Scotland you have to admire the leader of the Scottish parliament for his drive and ambition. While he has less than zero chance of persuading Lloyds to move lock stock and barrel to Scotland you have to give him credit for putting his reputation on the line to even try and talk them around.
...
Were Lloyds Bank investors short-changed with HBOS?
As the acquisition of HBOS continues to unravel before our very eyes there are serious concerns that investors in Lloyds Bank have been short-changed by the acquisition. It is no secret that Gordon Brown and various regulators in the UK were very keen to see Lloyds Bank step in and save HBOS as the company was literally on the verge of collapse. However, just a few months after the acquisition has...
Read MoreMoody's warns of problems in UK brewing sector
Credit rating agency Moody's has confirmed that the bleak outlook for the UK pub sector could continue for some time to come with many of the U.K.'s biggest pub owners facing significant cash flow issues as debts continue to mount and business levels continue to tail off. So how will this impact upon the UK pub sector in the short to medium term?
Even though the rate of pub closures...
Sports Direct hits a sticky patch
While Sports Direct owner Mike Ashley has been in the news of late with regards to his investment in Newcastle United Football Club and the turmoil caused by the departure of Kevin Keegan, it seems that there is also turmoil elsewhere in his business empire. Sports Direct has confirmed that trading conditions 'remained the toughest in the group's history' prompting research analysts to get out th...
Read MoreFSA concerned about jump in Sainsbury's share price
The Financial Services Authority (FSA) is this evening investigating trading in Sainsbury's shares ahead of rumours that the Qatar Investment Authority (QIA) may be on the verge of increasing its 26% stake in the operation and may in fact have approached management with regards to a potential bid. The silence from Sainsbury's itself has been deafening although the fact that the FSA has become invo...
Read More