Fed Ex in third-party talks Magna P do a utle s ite to
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• In a move designed to calm the US stock market global parcels giant Federal Express confirmed last week that it is looking hard at stemming its international losses.
In a development which is likely to worry drivers unions throughout Europe, the USbased company says that it is considering the "possible restructuring or co-operative or other business arrangements with third parties" and that discussions have already been held with those third parties.
It is not clear if any changes will affect the parcels or contract distribution business, and Australian-owned parcels competitor TNT says it is not involved with any talks.
Federal Express stresses that the examination of available options is "exploratory" and that no conclusions or agreements have been made.
The New York announcement came as Federal Express's share price rose when speculation gathered over the future of the company. Federal Express has made no secret of its problems in the UK, Ireland and on the Continent; it says they stem from the general depression in economic activity.
But in the UK the company has been hit by the disastrous purchase of Littlewood's home delivery service, Index, and the resulting sale back to the retailer. In an effort to stem losses the company has also pulled out of the heavy freight market to concentrate once again on small packages, and it has simplified its parcel product line. The changes resulted from the appointment of trouble-shooter Ken Newell as UK and Ireland vice president. Newell, who took over from Cohn Millbanks 18 months ago, has recently been moved up to become senior vice president of Europe (now including UK and Ireland), the Mediterranean and the near East.
In the UK Federal Express employs 5,000 staff from 39 depots with a parcels hub at Nuneaton,.
The company also operates from seven airports, including Heathrow, Gatwick, Birmingham and Prestwick.