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Royal Mail Privatisation 'in The Coming Weeks'

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http://www.bbc.co.uk/news/business-24058989

The government has given formal notice to the stock exchange that it plans to privatise the Royal Mail "in the coming weeks".

It has not decided exactly how much of the service it will sell, but has said it will be the majority.

Employees will be given 10% of the shares, with the rest being offered to institutional investors and members of the public.

The minimum amount members of the public can apply for will be £750.

Free shares will be given to 150,000 UK-based Royal Mail employees, who will be able to apply for additional shares under an employee priority offer, with a minimum application of £500.

So the govt is aiming to fleece the workers as much as possible. Will this new private company be able to renegotiate the contracts with the like of TNT for delivering the end mail?

Anyone here taking a punt?

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http://www.bbc.co.uk...siness-24058989

So the govt is aiming to fleece the workers as much as possible. Will this new private company be able to renegotiate the contracts with the like of TNT for delivering the end mail?

Anyone here taking a punt?

Nope. Don't believe in buying something I already 'own.'

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Informed the stock exchange?

WTF have they to do with it...they are an exchange that trades stocks....

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http://www.bbc.co.uk/news/business-24058989

So the govt is aiming to fleece the workers as much as possible. Will this new private company be able to renegotiate the contracts with the like of TNT for delivering the end mail?

Anyone here taking a punt?

It will depend upon the price but assuming that it is priced attractively I will be jumping in with both feet.

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EU directives is why it is being privatised. Don't tell anyone though.

Why aren't La Poste (France) and Swiss Post (Switzerland) being privatised then?

That's a crappy EU directive if it's only us that has to privatise. Boo!

Edited by byron78

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After posting that occurred to me about that nice liability. Will they keep it on the govt books.

..as if you had to ask...

the pension assets are on the books; the liabilities are not (because we're not liable yet, even though we know with actuarial certainty what they will be...and it's bigger than the assets which we have booked) :(

Peter.

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I can tell you how this is all going to end.

Once upon a time Royal Mail was actually Royal Mail Letters and Royal Mail Parcels, the Letters side of the business hated parcels and looked down upon them, "Parcels were always seen a something the Railways had done and nothing to do with letters".

Of course Royal Mail Letters didn't mind delivering Datapost items on behalf of RM Parcels (Datapost seen as a big brand quality product).

In the early 90's Royal Mail Parcels was branded as Parcelforce, the original idea was to have their vans painted blue and eventually Royal Mail would get rid of the ghastly parcels business. Royal Mail (Letters) then had a had surge of new managers, most had joined on the promise of share options because all of Royal Mail and Parcelforce were going to be privatised by the Tories.

This didn't happen. Parcelforce stayed red and in fact became Royal Mail Parcelforce for a while.

The Managers at Royal Mail were an inept lot and didn't know how to run a mail business.

So Parcelforce has been making a profit because of the internet boom and online shopping, Royal Mail itself is losing money, snail mail is so last century and losing out to emails.

What I predict will happen will be Parcelforce will somehow be divorced (asset stripped) and sold on to money men who will become very rich, Royal Mail will flounder and need Government intervention to stop it going under.

Edited by Hectors House

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Didn't they change the name to CONsignia at great expense......who will now have to pay the pension deficit? ;)

http://www.telegraph.co.uk/finance/2764832/Consignia-name-lost-in-post-as-Royal-Mail-returns.html

It was, however since 2002 there has been an internet shopping boom and Parcelforce is doing rather well, whereas Royal Mail (the letter side of the business) is doing rather poorly.

Remember National Girobank? they were part of the group until the Tories sold it off, where are they now?

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So Parcelforce has been making a profit because of the internet boom and online shopping, Royal Mail itself is losing money, snail mail is so last century and losing out to emails.

Speaking as an internet retailer, I've not used parcelforce for a year.

In last year and with a massive increase since April (RM price rise, ) I though parcelforce had been hammered by Collectplus / MyHermes on much cheaper smaller parcel prices

Edited by Saving For a Space Ship

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..as if you had to ask...

the pension assets are on the books; the liabilities are not (because we're not liable yet, even though we know with actuarial certainty what they will be...and it's bigger than the assets which we have booked) :(

Peter.

Nice one-off boost to the deficit figure there though. You couldn't make it up. :rolleyes:

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Heard that TSB Bank is planning an IPO next year.

And I bought shares in that last time round.

Who would have thought they could keep on selling the 'family silver' off over and over again, and like suckers we fall for it?

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Speaking as an internet retailer, I've not used parcelforce for a year.

In last year and with a massive increase since April (RM price rise, ) I though parcelforce had been hammered by Collectplus / MyHermes on much cheaper smaller parcel prices

Only been a short time since the price increases - it will take the general population and companies probably a couple of years to react to price - if not longer (companies moving more to internet rather htan direct mail interaction). A sweet spot for income as they are creaming in additional profit, but with the knock on later on down the line when the public stop sending cards, compainies switch couriers (deals can take months to iron out). Short term gain with longer term pain to come, how lucky the IPO is timed for now. :ph34r:

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Heard that TSB Bank is planning an IPO next year.

And I bought shares in that last time round.

Who would have thought they could keep on selling the 'family silver' off over and over again, and like suckers we fall for it?

Actually from polls about 80% of those polled are against the sell off. I guess rewarding their buddies in the finance sector takes precedence over voter wishes.

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Only been a short time since the price increases - it will take the general population and companies probably a couple of years to react to price - if not longer (companies moving more to internet rather htan direct mail interaction). A sweet spot for income as they are creaming in additional profit, but with the knock on later on down the line when the public stop sending cards, compainies switch couriers (deals can take months to iron out). Short term gain with longer term pain to come, how lucky the IPO is timed for now. :ph34r:

Yeah amazing coincidence.

Almost as if the prices were increased as a sweetener to potential investors asset strippers.

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To be truthful....most of the mail I get nowadays is junk mail I could well do without....bills are mainly on-line as are anything to do with banks...the postage now costs more than a card to send so I encourage people not to send them, a phone call is more personal and welcoming...there is always skype or email at a push......once a week delivery would be fine or would be prepared to collect at the local convenience store come post office.....I am sure the owners would welcome the extra foot flow, chance to sell more stuff and a chance of a chat and local update. ;)

Edit to say for parcels there is a private company that collect from another food store not far away, receipt always given and service very good.......post office can't compete with their prices. ;)

Edited by winkie

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I can tell you how this is all going to end.

Once upon a time Royal Mail was actually Royal Mail Letters and Royal Mail Parcels, the Letters side of the business hated parcels and looked down upon them, "Parcels were always seen a something the Railways had done and nothing to do with letters".

Of course Royal Mail Letters didn't mind delivering Datapost items on behalf of RM Parcels (Datapost seen as a big brand quality product).

In the early 90's Royal Mail Parcels was branded as Parcelforce, the original idea was to have their vans painted blue and eventually Royal Mail would get rid of the ghastly parcels business. Royal Mail (Letters) then had a had surge of new managers, most had joined on the promise of share options because all of Royal Mail and Parcelforce were going to be privatised by the Tories.

This didn't happen. Parcelforce stayed red and in fact became Royal Mail Parcelforce for a while.

The Managers at Royal Mail were an inept lot and didn't know how to run a mail business.

So Parcelforce has been making a profit because of the internet boom and online shopping, Royal Mail itself is losing money, snail mail is so last century and losing out to emails.

What I predict will happen will be Parcelforce will somehow be divorced (asset stripped) and sold on to money men who will become very rich, Royal Mail will flounder and need Government intervention to stop it going under.

There is still quite a lot of items sent by post even with the invention of the email, one guy who retired about ten years ago was saying it (emails/internet) would decimate the postal service in a couple of years (at the time) -to another postie before i'd even started as one, the volumes have decreased but rounds have generally been made bigger to adjust.

What I do notice is there are a few more days a month where there is a marked difference (less) in the amount of items to deliver for that day, as it all needs to go out it must be very cost inefficient. A five day week, or less would make a decent return for a private company but the service would be abismal, suppose that will be the trade off in the future.

Yes the managers bit is pretty accurate i'm afraid to say.

The terms and conditions will be the same for three years supposedly after it's taken over, after that who knows....:blink:

Edited by motch

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