Royal Mail -- privatisation revived

Synopsis

Nikki Royal Mail is set for privatization, marking a significant Revival in the UK's privatization efforts. This decision is confirmed to occur within weeks, with expectations for this year. Recent trading data from the first quarter of the 2013-2014 year indicates a generous dividend policy. Management appears ready to confront unions opposing privatization, seeking substantial concessions. While Royal Mail remains a major player in letter traffic, volumes are declining at a high single-digit rate. The company is focusing on its parcel business, which shows potential for growth despite flat first half volumes. The privatization trend is not unique to the UK, as evidenced by the recent flotation of Belgium Post earlier this year. Investors are likely to show interest in Royal Mail, although details on pricing and the extent of the sale remain unclear.