Investors in TNT, the Dutch postal group, are recommending caution over plans to take on a major stake in Royal Mail’s profitable parcels arm.
TNT, Europe’s second largest postal company, has already signalled its interest in taking a controlling stake into Royal Mail’s parcels delivery service, General Logistics Systems (GLS), headquartered in Amsterdam.
Stakeholders of TNT however are understood to be against buying into Royal Mail, following concerns over its long-term viability. The latter is having to battle with the rise of online services and a huge pension deficit.
It is also understood that TNT’s proposed offer for GLS falls well short of the UK Government’s expectations.
Questions marks over TNT’s planned bid could prove a major blow to the Government’s plans to secure external investment into the postal body.
Business Secretary Lord Mandelson has been a driving force in the Government’s plans to partly privatise the Royal Mail, which include allowing private companies to form partnerships with the state-owned postal service.
Last week, TNT reported a 58% fall in net profit in the first quarter of the year.