It would be a brave of the government to force through the generally unpopular part privatisation of Royal Mail. It wouldn't exactly be a morale or confidence building move in the current climate. However whatever the recent profitabilty of the company it all looks miniscule compared to the pension hole that sits behind the company (as Lord Mandelson has pointed out). Buying into a company with a £6-12 billion pension deficit would be a brave move with current profits.
And any suitors from within the mail sector will also be feeling the cold wind that has blown through the direct mail world over the past 9 months. Volumes are down and many are suffering. Despite the undoubted ability of Lord Mandelson to create the future that he seeks it's difficult to see a deal that would give equal weight to the needs of all stakeholders; Mailers, employess and shareholders. It would be a tragedy if the market lost diversity but equally employees who have worked all their lives for pension entitlements need to have their expectations met.
Charles Ping
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Member since: 18 Jun 2008
Last login: 07 Sep 2009
Total Posts: 5
