Report: CVC Eyes Stake in Royal Mail

LONDON (Reuters) – Private equity firm CVC Capital Partners is drawing up plans to take a stake in Britain’s state-owned postal operator Royal Mail, the Sunday Telegraph said, without citing sources.

A spokeswoman for CVC declined to comment.

British business minister Peter Mandelson said in December the Royal Mail should be part-privatised to improve its competitiveness, and welcomed an approach by Dutch logistics company TNT (TNT.AS) to take a minority stake in the business.

TNT said its interest hinged on the full implementation of Mandelson’s plans, including changes to regulation and the government paying off much of Royal Mail’s company pension liabilities.[ID:nLG196453]

Earlier this month, several lawmakers from the ruling Labour Party put their name to a motion opposing the partial privatisation of Royal Mail.

(Reporting by Mark Potter; Editing by Richard Hubbard)