A delegation led by John Allan, Deutsche Post's finance director, has met Royal Mail's advisory board, The Sunday Times reported yesterday.
Dutch mail group TNT is thought to be the favourite to win a slice of state-owned Royal Mail after the Government indicated it was prepared to sell 30% of the postal carrier and use the money to invest in modernising the company. Private equity firm CVC is also in the running.
Deutsche Post's share price fell this morning at the news. Reuters quoted a Frankfurt-based trader as saying such a move would not be positive as "Deutsche Post does not have the best track record concerning expansion abroad," pointing to the company's problems with its US unit.
A report on Royal Mail's future by the former telecoms regulator Richard Hooper advocated external investment, a recommendation endorsed by the Government despite opposition from communications workers union CWU and some MPs.
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