Royal Mail denies talks over possible sale to private equity

Royal Mail has denied trade union claims that it is in “secret talks” over a possible sale to private equity as workers stage fresh strikes in a row over pay and conditions.

The group said it has held “no such talks” as suggested by the Communication Workers Union (CWU) in a media interview.

Royal Mail said: “We are aware that in recent media interviews, Dave Ward, the general secretary of the CWU has indicated that we are in ‘secret talks’ with a private equity investment group, he believes, regarding a takeover of Royal Mail. The company wishes to make clear that this is not true. We are involved in no such talks.”

It comes as workers started a 48-hour walkout set to disrupt postal services, with a further 48-hour stoppage also planned from September 30 unless the group can reach agreement with trade unions.

Shares in Royal Mail dipped 2% after the statement.

Ward had reportedly called for an investigation into bosses’ conduct at Royal Mail after claiming they had held secret discussions with Luxembourg-based private equity firm Vesa Equity Investment, which is its largest shareholder.

The Government is carrying out a national security review into the ownership of Royal Mail after it emerged last month that Vesa Equity – controlled by Czech billionaire Daniel Kretinsky – had raised its stake to more than 25% from 22% previously.

The move triggered speculation that Vesa is planning a full scale takeover – attempts which could prove particularly controversial given Kretinsky’s investment links to the Russian state gas operator Gazprom.

Royal Mail is already at the centre of a union disagreement after workers baulked at a 2% pay increase offer.

The CWU has warned its 115,000 members are in the dispute for the “long haul”, adding that they will be fighting to get “the pay deal they deserve”.