What future for Royal Mail as Deutsche Post wades into UK with mooted bid for Exel?
Allan Leighton, chairman of Royal Mail, can only look on and weep. While overseas rivals respond to the challenge of deregulation by expanding into new businesses and new territories, he’s condemned to make the best of what he’s got. Trapped within the Treasury controlled boundaries of the public finances, all he can do to meet the challenge of postal competition is slash costs to match the decline in revenues. The already privatised Deutsche Post, by contrast, is moving to reduce its dependence on the German domestic market, where its monopoly is due to end in 2007, by expanding overseas.
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