TNT targets GLS

TNT is demanding control of the Royal Mail’s profitable European parcels delivery arm as part of a multi-billion pound proposal made to the British government, The Sunday Telegraph newspaper has reported.

TNT is demanding control of the Royal Mail’s profitable European parcels delivery arm as part of a multi-billion pound proposal made to the British government, The Sunday Telegraph newspaper has reported.

The newspaper, citing people familiar with the bid, said TNT’s desire to gain control of General Logistics Systems (GLS), which is headquartered in Amsterdam, was contained in an outline plan submitted to the UK government in recent weeks.

It cited insiders as saying ministers were unhappy with the valuation attached to Royal Mail in TNT’s proposal and that the board of Royal Mail would not willingly surrender control of GLS.

It said TNT’s proposed offer was understood to have fallen well short of the £3bn valuation that ministers are thought to be attaching to a 30% stake in Royal Mail.