La Poste "should stay state-owned."
An official government commission has recommended that La Poste remain state-owned and not be floated on the stock exchange.
La Poste should remain state-owned and not be floated on the stock exchange, an official government commission will recommend, according to French media reports.
The Allieret commission, appointed to examine La Poste’ s plan to restructure into a limited company and then float a minority stake, has backed the idea of transforming the postal operator’s structure ahead of full postal market liberalisation.
A majority of the commission’s members said they supported the plan to make La Poste, currently an autonomous public organisation, into a 100% state-owned company, several newspapers said, citing from a preliminary commission report.
Its capital could then be opened to publicly-owned financial investors such as the Caisse des depots et consignations (CDC). This would be a coherent and desirable step in view of La Poste’s need to raise funds for future financing and its medium-term growth strategy.
But the commission has effectively killed off La Poste’s ambition of a share placement in 2010 or 2011, according to French media. In the context of the financial crisis, the hypothesis of an appeal to private investors is neither desirable nor credible, Les Echos cited from the preliminary report.
The commission is due to hold its final meetings this week and then present its official report next week.
