Royal Mail part-privatisation likely to be delayed

LONDON (Reuters) - The part-privatisation of Royal Mail is likely to be delayed on price grounds, the Guardian and Independent said.

Bids for the 30 percent stake put up for sale by the government have not been high enough, the Guardian said in its Monday edition.

Business secretary Lord Mandelson is expected to say that he will put the interests of the taxpayer first and that depressed market conditions and union opposition are deferring sufficiently high bids, the paper said.

Private equity group CVC has been the only firm so far to table a firm offer, the Independent said. The Sunday Telegraph previously reported that CVC had offered to pay just under 2 billion pounds for the stake.

The delay would be welcomed by many in the ruling Labour party, with over 140 members of parliament having signed a motion opposing the deal.

But Olympics Minister Tessa Jowell told BBC television: "I know of no proposed change to the policy."

Mandelson has been keen to shake up Royal Mail's management. The company has an 8 billion pound pension deficit and the government wants to partly privatise it to make it more competitive.

Royal Mail said on Sunday it may close its final salary pension plan if the part-privatisation scheme fails.

(Reporting by Rosalba O'Brien)