TNT in Talks to Sell Mail Stake

TNT, the Dutch express and postal group, is in talks with CVC Capital Partners about selling a stake in its mail unit to the Luxembourg-based private equity firm, according to Dutch media reports.

CVC is seeking a “substantial stake” in TNT Post worth as much as $1.9 billion, Het Financielle Dagblad, the daily financial newspaper, quoted sources close to the talks as saying.

TNT declined to comment on the report, saying it is focusing on the legal and administrative details of its earlier announced decision to split its mail and express businesses.

Europe’s second largest express company announced in April that it was examining an initial public offering or partnerships for its mail unit.

The decision, following pressure from activist shareholders claiming a breakup of the group would create value, has rekindled speculation about takeover approaches for TNT’s profitable express operations.

Splitting up the group would make the express unit more attractive to potential bidders including UPS and FedEx which have long been seen as buyers of a business that would significantly increase their European footprint.

TNT’s mail business is profitable, but volume is declining, and deregulation has sharpened competition in its domestic and overseas markets.

Separately, CVC is reported to be eyeing a Brussels listing for Bpost, the Belgian postal group in which it has a 49.9 percent stake. The Belgian government owns the remaining 50.1 percent of the former postal monopoly.

CVC previously held a stake in the Danish postal service and has offered to buy a third of Britain’s Royal Mail.

-- Contact Bruce Barnard at brucebarnard47@hotmail.com.