Takeover battle: Royal Mail wants permission to cut second class deliveries
Royal Mail has urged regulators to allow it to reduce second-class deliveries as it tries to fight a takeover by a billionaire nicknamed the “Czech Sphinx”.
Parent company International Distributions Services (IDS) yesterday begged Ofcom to “speed up” a review that would allow it to cut services and save money.
The petition came after the board rejected a £3.2bn bid from Daniel Kretinsky, saying the bid was “opportunistic” and undervalued the 508-year-old postal service.
IDS top brass will meet with institutional investors this week to get them on their side over the Czech billionaire’s approach.
Kretinsky, 48, who co-owns West Ham United and owns a stake in Sainsbury’s, is said to be working on another bid.
Royal Mail wants to reform the Universal Service Obligation (USO), meaning it must deliver letters nationwide for the same price every day except Sunday.
Shareholders said delays in reviewing the rules had left IDS “vulnerable to corporate predators”.
IDS chairman Keith Williams said: ‘The lack of Universal Service reform by the government and Ofcom over the last four years has slowed Royal Mail’s transformation and urgent action is needed.
“Reform is in the regulator’s hands and we urge Ofcom to speed up its review.”
Royal Mail wants to reduce second class deliveries to every other weekday, or just two a week, and never on Saturdays.