With bids coming in below the €5 billion target the UK government has scrapped controversial plans to partially privatise its state-owned, cash-strapped postal company, Royal Mail, putting its long term survival in question.

“Market conditions have made it impossible to conclude the process to identify a partner for the Royal Mail on terms we can be confident would secure value for the taxpayer,” Business Secretary Peter Mandelson said. A number of interested bidders included FedEx Express, Luxembourg-based CVC Capital Partners, and TNT the Dutch mail and express delivery group.