Private equity group CVC Capital Partners is drawing up plans to buy a stake in Royal Mail, reports the Daily Telegraph. CVC’s interest is at an early stage and the firm is believed to be worried about the reputational risk of any deal because the part-privatisation of Royal Mail is so politically sensitive. The move to sell a minority stake in Royal Mail, led by Lord Mandelson, the Business Secretary, has drawn criticism and any deal with a buyout firm, which are treated with suspicion by many trade unions and Labour MPs, is likely to exacerbate their anger. CVC bought a 22% stake in Post Danmark from the Danish state in 2005 and went onto buy half the Belgian postal service and last year announced a merger with Posten, the Swedish post office.

This entry was posted by Gwen Robinson on Monday, January 19th, 2009 at 5:44 and is filed under M&A, Private equity. Tagged with cvc, Royal Mail. Edit this entry.