TNT eager to explore minority stake in Royal Mail

Lord Peter Mandelson, the business secretary, has revealed the government is considering selling a minority stake in its poor-performing Royal Mail in what he describe as an essential move to maintain deliveries six days a week across the UK.

The Dutch postal giant TNT responded immediately, saying it was eager to open talks on developing a 'strategic partnership' with Royal Mail. Other possible bidders include German-owned DHL Express and UK's Business Post Group, The Independent reports.

It is understood ministers – who are said to have started urgent negotiations with private investors leading up to a decision early in the new year – will offer a stake of between 25% and 33% in Royal Mail.

The business secretary told peers a massive injection of private capital was vital to secure Royal Mail's long-term future. 'It is the only company capable of delivering mail to every address in the UK, six days a week, and... that will be the case for the foreseeable future. So a healthy Royal Mail is vital to sustaining the universal service,' he said.

Further reading:

Ofcom could regulate Royal Mail alongside ISPs and BT

Read The Independent story