Ministers have been accused of attempting to cover up negotiations aimed at selling Consignia's core Royal Mail business to the privatised Dutch postal group TPG.

Insiders said TPG had put forward plans for "an all-share takeover of Royal Mail". The news contradicts a statement given on March 21 in which the government denied claims of talks with an overseas bidder.

The talks broke down two weeks ago and are now said to be "completely dead".