Discussion Point: Sourcing in China – the supply chain challenges
Discussion Point: Sourcing in China – the supply chain challenges
Read MoreTag: Worldwide
Royal Mail puts value at zero to calm share fears
Royal Mail is worth nothing, the organisation has told the Government and politicians, in an effort to take the political heat out of its push to give employees shares in the business.
The state postal service, in arguing that the Government effectively would be giving nothing away if staff were given shares, contends that the shares would also be worthless when they are issued.
Royal Mail has calculated that it is worth nothing because its assets, which are thought to be valued at about GBP5 billion, are cancelled out by its pen-sion deficit, which stands at GBP5.6 billion.
Royal Mail has told the Treasury and the Department of Trade and Industry that the group would be worth GBP4 billion by 2010-11, triggering shares worth GBP5,000 per employee.
It believes that it can build up from a zero balance to a GBP4 billion value through modernisation and increased productivity, which will come from giving staff an incentive through the share-ownership programme.
Read MoreCTT Correios de Portugal sign with Angolan Posts – ENCTA – A 6.8 million euro business contract
CTT Correios de Portugal and ENCTA-Empresa Nacional de Correios e Telégrafos de Angola (the Posts of Angola) have signed last 23 August in Luanda, Angola, a two-year business contract in the amount of 6,8 million euro for the provision of counter automation systems.
Within the scope of this contract by which CTT becomes a provider and a partner of ENCTA, the Portuguese posts shall provide its know how in IT technologies and Communication in counter and business management services, as well as technological and behavioral training in view of the automation of the post offices network of Angola.
Read MoreTNT shareholders approve logistics sale
Dutch mail firm TNT’s shareholders approved on Friday the 1.48 billion euros (USD1.88 billion) sale of its underperforming logistics business to U.S.-based private equity fund Apollo Management.
Proceeds from the sale, announced a month ago, will mostly be returned to shareholders via a share buyback.
The deal was approved with 99.9 percent. Roughly 34 percent of capital was present.
TNT announced last December its intention to sell its logistics activities to concentrate on mail and express delivery, which has 36,000 employees and represents about a quarter of group revenue.
TNT re-emerges as possible takeover target
Dutch mail and logistics company TNT has become the subject of renewed takeover speculation after the European Union’s highest court ruled that the Netherlands is breaking the law in owning a “golden share” in the global mail and express delivery company.
The European Court of Justice said the government’s stake, which gives it veto power over TNT’s mergers and acquisitions, is incompatible with the free movement of capital in the 25-nation EU.
The Dutch government has held the stake since the 1980s when the former state-owned post and telephone company was privatized and split into a telecommunications group and a mail operator. The company subsequently expanded into logistics and express delivery.
TNT shares rose 3 percent immediately after the court ruling on speculation that the decision would make it easier for companies such as UPS, FedEx and Deutsche Post to take over the group. La Poste, France’s state-owned mail monopoly, also has been named as a likely suitor.
TNT was at the center of takeover speculation last November when Cornelius Geber, a former executive of Swiss logistics giant Kuehne & Nagel, said he was trying to organize a consortium to launch a bid.
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