Lazard to advise government on Consignia
LAZARD, the investment bank, has been hired by the government to advise on the restructuring of Consignia, the renamed Post Office.
The bank’s mandate is to review the restructuring plan put forward by Consignia’s board. It will also advise the government on companies that bid to take over parts of the post-office operation.
TPG, the Dutch mail group, and Deutsche Post Worldnet, the German giant, both told The Sunday Times they were interested in bidding. David Ireland, an analyst at ABN Amro, said: “TPG is by some margin the most efficient mail operator in Europe.”
Last week Graham Corbett, chairman of Postcomm, the postal regulator, said he intended to open up 30% of Consignia’s business to competition from April. His comments have prepared the ground for Allan Leighton, Consignia’s interim chairman, to cut the group’s workforce by 15% over the next year. Consignia’s 17 subsidiary companies will be cut to five and its numerous consultants, who receive about Pounds 70m a year, will be culled. Consignia is close to announcing a big name in financial services to head Post Office Ltd, which runs the network of 17,500 post offices. The appointment signals that the retail and distribution divisions will eventually be split into two companies.
(C) The Sunday Times, 2002
