Manifesto movements

Labour's policy on the Royal Mail already had an impact

A very short snippet - interesting to see the Labour Party manifesto apparently already impacting some investor thinking. In the section on economic infrastructure Labour makes some specific comments in relation to the Royal Mail, which is part of International Distributions Services, which is in turn currently subject to a takeover bid.

The manifesto was launched about 11:00am this morning (I received an email copy just before 12:00 but was able to access it online earlier. Here’s what it says about Royal Mail:

Royal Mail remains a key part of the UK’s infrastructure. Labour will ensure that any proposed takeover is robustly scrutinised We need to forge ahead with new roads, railways, reservoirs, and other nationally significant infrastructure and that appropriate guarantees are forthcoming that protect the interests of the workforce, customers and the United Kingdom, including the need to maintain a comprehensive universal service obligation. Labour will also explore new business and governance models for Royal Mail so that workers and customers who rely on Royal Mail services can have a stronger voice in the governance and strategic direction of the company.

And here’s what the IDS share price has done today.

Looks like a manifesto wobble around 11:00, though shaken off later in the day. IDS is still trading well below the offer price though and the next decisions to be taken about Royal Mail’s future look pretty likely to be made by Labour politicians.

I’ll write more on the Labour manifesto shortly.