Sep 10, 2010

Britain plans to privatize Royal Mail postal system

04:30 PM

Britain's new government has confirmed that it plans to privatize Royal Mail, the British postal system, the BBC reports.

Royal Main is the entity that collects, sort and delivers the mail. Postal Office Limited operates the nationwide network of post office branches and will remain in government hands, the BBC says.

Business secretary Vince Cable tells the BBC that no final decision has been made on whether Royal Mail will be privatized as a private company or public share offering, but that "we urgently need to bring in private capital."

"Royal Mail is facing a combination of potentially lethal challenges -- falling mail volumes, low investment, not enough efficiency and a dire pension position," he says.

He says outside investors will hold the most shares and the rest will be offered to Royal Mail staff, the BBC reports.

http://content.usatoday.com/communities ... l-system/1