The government's plans to sell off a stake in Royal Mail are likely to be delayed as the legislation is being "jostled for space", according to Lord Mandelson.
In an interview with the Financial Times, the business secretary says it is unlikely the part-privatisation will take place before the House of Commons breaks up for the summer in July, but adds that it is still his
intention to introduce legislation to allow the sale before the next general election, expected in 2010.
Mandelson also points to the depressed state of the credit markets as another reason for delaying the sell-off - which is strongly opposed by many Labour MPs.
He says: "I want to retain the slot, but... I have to concede that the original linking of the legislative passage and the bidding process for the strategic partner has been decoupled."
It is believed that both TNT and private equity group CVC Partners have so far offered less than £2bn for a 30% stake in the state-owned organisation - below the government's original undisclosed valuation.
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