TPG CEO sees news on Danish Post deal in 1 month, no word on Belgian buy

Peter Bakker, CEO of TPG NV, said he expects to hear from the Danish government within one month on the sale of a stake in the Danish postal operator.

TPG is among several bidders for the 25 pct stake in Post Danmark put up for sale by the Danish government.

TPG has also expressed interest in bidding for a stake in the Belgian postal operator. However, Bakker said he has had ‘no clear indications’ from the Belgian government yet on the timing of privatisation.

TPG is looking to expand into foreign postal markets in order to help offset declines in domestic mail volumes and increasing competition in the Netherlands.

Bakker was unphased by recent reports of 200-300 pct growth at Dutch rivals like Selekt Mail, a joint venture of Deutsche Post in Holland. According to TPG figures, its two main rivals have only a 2 pct share of Dutch mail volumes.

The CEO claimed as well that TPG is winning more business from foreign operators in their home market than they are stealing from TPG in the Netherlands.

TPG reported sales from its European mail networks up 16 pct to 475 mln eur in 2004, helping to offset a 1.4 pct decline in Dutch mail revenues to 2.66 bln eur.

The CEO was also unexcited by news of a quicker liberalisation of the UK market in 2006, saying liberalisation will have only a minimal effect on new market entrants like TPG as long as other barriers to competition remain. These include an exemption on value-added tax for the Royal Mail.

TPG handles around 1 mln mail items per week in the UK and expects its total volume to rise to around 200 mln items in 2005.

TPG forecast earlier ‘stable’ revenues at its mail division this year, with growth abroad offsetting a decline in Dutch volumes. The operating margin is expected to ‘soften’ versus 22.2 pct in 2004, due to higher pension costs.