An Post to run National Lottery until 2010
AN Post is to continue running the National Lottery until the end of 2010.
Finance Minister Brian Cowen last night granted a two-year extension to the licence, which was due to run out in 2008.
Read MoreTag: Europe
Candover buys DX to merge it with SMS
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.
Read MorePost Office Union piles strike pressure on UK Royal Mail with claim of 'blatant privatisation'
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.
Read MoreCandover moves into mail with pounds 349m DX deal
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.”
Read MoreInternet top source for home-delivery orders
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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