2008 Competitive Market Review L13983
2008 Competitive Market Review
Read MoreTag: France
French postal workers protest privatization move
Tens of thousands of French postal workers went on strike on Tuesday (23rd September) in protest at plans to open the country’s mail network to private investment, post office operator La Poste said.
Postal unions say allowing private capital in would be the first step toward privatization, and a sell-out of a public institution most French are happy to see run by the state.
But its leadership says it needs 3 billion euros (USD 4.40 billion) to get into shape for competition when the sector opens fully in 2011 in accordance with European Union rules.
Any move towards privatization would require the postal service to become a public limited company instead of a branch of the civil service.
La Poste said in a statement that some 25 percent of employees were taking part in the one-day protest at around 0900 GMT. The operator employs around 300,000 in total.
The government has yet to voice an official position on the investment plan sought by the group’s management, but President Nicolas Sarkozy has called for a commission to discuss the matter for two months from October.
Read MoreLa Poste acquires Portuguese Baam
La Poste announced the acquisition of the Portuguese direct mail advertising company Baam for an undisclosed sum as part of its international expansion plans.
The takeover of Baam was carried out through La Poste’s postal services subsidiary Mediapost and shows the company’s ambitions to further expanding abroad and helping its customers in their development in Europe through its international activities. Following the takeover, Baam will operate under the brand Mediapost.
La Poste commented that it planned to expand its European mail operations in three areas: upstream mail operations, international mail consulting, and unaddressed advertising mail. It was already present with subsidiaries in Britain and the USA.
Read MoreCommission to study future of French post office
A commission will look at the future of the French post office, which is aiming for partial privatisation in 2010, government spokesman Luc Chatel said.
State-owned La Poste has announced plans for a partial sell-off of its activities ahead of the full liberalisation of the European postal services market from 2011.
Speaking after a meeting of the cabinet, Chatel said the 22-strong commission, to be headed by a former top executive of EDF, Francois Ailleret, would be made up of a wide range of members including customers, staff representatives and parliamentarians.
‘This commission will be charged with considering the future of the post office, reflecting on what developments are necessary, given the European environment and the competition that will appear on Jan. 1, 2011.
The commission will consider the issue during October and November, Chatel said.
Any move towards privatisation would require the postal service to become public limited company instead of a branch of the civil service.
Read MoreLa Poste plans to buy Spain's Seur
La Poste decided to investigate buying a 52pct stake in Spanish express parcels company Seur by exercising its right to counter a rival bid, French media reported. This would give it a controlling holding of nearly 72pct in the company.
The decision follows the August 1 offer by British financial investor Doughty Hanson of EUR 520 million for a 52pct stake in Seur that a group of small shareholders put up for sale as a packet. The French postal operator, which already holds 19.6pct in Seur through its express holding GeoPost, has the right to match or outbid any offer for Seur shares under an existing agreement.
The French postal operator said in a statement that GeoPost had been authorised by La Poste’s supervisory board to exercise its right to pre-empt the other bidder and it would now make “deeper investigations” in the coming months, according to an AFP report. La Poste would take a decision on the final conditions for this potential acquisition based on these investigations, it added.
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