Consignia says no plans to split co
RBC NEWS 8th October 2001
CONSIGNIA SAYS NO PLANS TO SPLIT CO
Section: COMPANY NEWS
LONDON (AFX) – Consignia, formerly the UK Post Office, has rejected a newspaper report claiming that the government plans to split the company into two under a radical restructuring plan, a Consignia spokeswoman said.
“We’re not splitting into two… The structure of the company will remain,” she said.
What Consignia is trying to change, she explained, is its cost structure in an attempt to save 1.2 bln stg by 2003.
It is outsourcing some of parts of the business, which it considers non-core, in order to achieve the cost savings target, she added.
“We’re looking at the business as a whole… to make our service more efficient and enable us provide better service to our customers,” the spokeswoman said.
The Sunday Times reported, without citing sources, that the Ministers are considering a plan to merge Royal Mail and Parcel Force into one company and put Post Office Counters (POC), which runs the network of 17,800 regional post offices, into another. Each company would have a separate board and management structure.
The scheme, it added, has been discussed at senior level within both Consignia and the government.
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