Britain reconsiders Royal Mail sale

LONDON, June 30 (UPI) -- The British government is reconsidering plans to sell part of the Royal Mail, Business Secretary Peter Mandelson said.

Government officials have discussed injecting capital into the service through a bond issue or debt restructuring, The Times of London reported Tuesday.

Chairman of the Treasury Select Committee John McFall has said restructuring debt or converting the Royal Mail's debt into equity could keep the government from the plan of privatizing 30 percent of the service.

Only one company, CVC, has submitted a bid for the minority stake in the Royal Mail, a $3.3 billion offer, The Times reported.

One source told the Times government officials believe it would be better to sell the minority stake when the economy improves.

TNT, a Dutch postal firm, has expressed interest in the sale. Deutsche Post, a third potential bidder, declined to comment, The Times said.