Author: Archive

Candover buys DX to merge it with SMS

Posted by | Jul 7, 2006 | |

DX Services, the mail business, is to be bought by Candover Partners, the private equity firm, for Pounds 348.7m.

The offer of 415p a share in cash represents a 26 per cent premium to the closing share price of 330 1/2p on July 3, the day before the company announced it had received an approach from an unidentified party.

Candover’s acquisition represents a direct challenge to the Royal Mail Group as the private equity firm plans to merge DX with Secure Mail Services, a postal company that delivers time-sensitive documents.

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Post Office Union piles strike pressure on UK Royal Mail with claim of 'blatant privatisation'

Posted by | Jul 7, 2006 | |

Protracted negotiations between Royal Mail and the union representing 160,000 of its employees come to a head later today, with the Communication Workers Union warning it will ballot members on strike action unless agreement is reached before the weekend on pay and working conditions.

The CWU and management have been in talks all week after the union backed away from an earlier threat to ballot workers last Monday. At issue is a pay deal worth up to 3.9pc and a range of other disputes including new automated sorting machinery and the transfer of some of the Royal Mail’s post offices to private sector partners.

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Candover moves into mail with pounds 349m DX deal

Posted by | Jul 7, 2006 | |

Order must be accepted by 06 August 2006. Minimum 12 month contract. Subject 1o BT line and availability. Further conditions apply.

Candover, the private equity company, yesterday took the fight to the ubiquitous Royal Mail after agreeing to pay pounds 349m for DX Services, the private post group spun out of the former conglomerate Hays 18 months ago.

Royal Mail still has a market share of more than 96 per cent in the UK, despite attempts to open up the market to competition.

Paul Kehoe, the chief executive of DX, said: “There has been 350 years’ worth of inertia in this market and the red post boxes continue to dominate.”

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Internet top source for home-delivery orders

Posted by | Jul 6, 2006 | |

Over half of all home-delivery shoppers say they place orders online, compared to under a quarter two years ago. The findings come from a report by retail authority Verdict Research into the home-delivery business. The #37bn business has been in a state of steady decline despite booming sales through online and TV shopping. While Internet sales have increased 28.9%, they have been unable to counter the losses in the mail order and door-to-door sales sector.

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Scotland set for privatised post trial

Posted by | Jul 6, 2006 | |

Britain’s first fully privatised door-to-door post service to rival the Royal Mail is to be trialled in Scotland.

Glasgow and Edinburgh have been chosen, along with Manchester, for an experiment which will give customers the choice of having collection, sorting and delivery carried out entirely in private hands.

The trial, to be conducted later this year by Royal Mail’s biggest rival, TNT, will see thousands of households visited by two postal workers and could pave the way for greater competition throughout the rest of Britain.

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DHL Japan starts ‘Green Logistics’ initiatives

Posted by | Jul 6, 2006 | |

DHL, the world’s leading express and logistics company, today announced the launch of its ‘Green Logistics’ environmental initiatives in Japan. As a first step, DHL Japan will begin using a fuel-cell car, a hybrid truck and bicycles in its collection and delivery services, primarily in Tokyo.

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UK Royal Mail plans GBP10m 'proportional parcel pricing' drive

Posted by | Jul 6, 2006 | |

Royal Mail is launching its biggest marketing campaign to date to explain its new Pricing in Proportion system.

The GBP10m integrated campaign includes a door-drop to every UK address – both business and consumer – and television ads voiced by actor Kevin Whatley. The ads, created by Abbott Mead Vickers. BBDO, will run for six weeks and break next week. Proximity London created the door-drop activity.

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Big Four Turn Cautious on China's Domestic Delivery Market

Posted by | Jul 6, 2006 | |

DHL, FedEx, UPS, and TNT have slowed down their expansion in the Chinese domestic delivery market these days due to high costs.

FedEx, the world’s largest express delivery company, is reported to only operate international express delivery business in China for the moment.

US-based FedEx has become the main sponsor of Chinese Badminton Team from 2006 to 2008, when members of the team would wear sports clothes with words “FedEx” when participating in international games.

A principal at the market division of FedEx’s Asia-Pacific region explained that this move was aimed to further enhance its brand recognition among Chinese small and medium customers.

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