AT THE HEART OF THE ROAD TRANSPORT INDUSTRY.

Call our Sales Team on 0208 912 2120

'Its considerable assets have to be offset against considerable losses'

23rd July 1992, Page 16
23rd July 1992
Page 16
Page 16, 23rd July 1992 — 'Its considerable assets have to be offset against considerable losses'
Close
Noticed an error?
If you've noticed an error in this article please click here to report it so we can fix it.

Which of the following most accurately describes the problem?

Money for this move could be raised from venture companies and from the 13,000 employees themselves. Heseltine says he wants to get the "best possible price" for the business, but this has to be seen in the context of a struggling market where volumes are down.

The major players in the private sector remain cagey about whether they will throw their hats into the ring.

Alan Jones, managing director of TNT Express, says he looks forward to studying details of the privatisation programme, adding: "We welcome the disciplines Parcelforce will face in the private sector."

Colin Millbanks, chief executive of Mayne Nickless subsidiary Parceline, thinks it unlikely his cash-rich parent will make a bid because the Australian giant also owns Interlink in the UK. Millbanks believes a Continental buyer might see Parcelforce as a route into the UK market, but sees a buyout as most likely to succeed. Securicor Omega Express chief executive Pat Howes does not rule out a bid but wants to know exactly what is going to be privatised. For example, 25% of Parcelforce's business comes across Post Office counters for private addresses. "That is not the business we are in," he explains.

"My money is on an employee participation scheme along the lines of NFC."

Like Alan Jones, Howes is pleased that Parcelforce will join the rest of the industry on a "level playing field" — without its VAT-exemption and crosssubsidies.

DI-IL echoes this view, seeing the sell-off as providing it with a "major opportunity" to compete with Parcelforce on quality alone. But the international giant, which counts Japan Airlines and Lufthansa among its major shareholders, is in no mood for buying.

"Our main interest," says marketing manager Christopher King, "is fair competition."