- Bosses are understood to hold regular talks about Daniel Kretinsky’s approach
- One major shareholder, Redwheel, broke cover to oppose the offer.
- Royal Mail rejected Kretinsky’s £3.2bn (or 320p per share) offer
Royal Mail will hold fresh talks with investors this week as a billionaire nicknamed the Czech Sphinx plans another bid for the 500-year-old postal service.
Top brass at Royal Mail owner Service International Distribution are understood to be holding regular talks about billionaire Daniel Kretinsky’s approach and have been holding talks with shareholders.
Before making new offers, IDS will be interested in hearing the opinion of other investors.
Talks about the offer will continue this week after one of the main shareholders, Redwheel, revealed its identity over the weekend to oppose the offer.
This month, Royal Mail rejected a £3.2bn (or 320p per share) bid from Kretinsky, who co-owns West Ham United and has a stake in Sainsbury’s.
‘Opportunistic’: This month, Royal Mail rejected a £3.2bn offer from Daniel Kretinsky
The postal service board said the offer undervalued the company and was “opportunistic.” But the tycoon is working on a new proposal and has until May 15 to present a new offer. A deal with Kretinsky would see Royal Mail come under foreign ownership for the first time since it was established by Henry VIII in 1516.
Redwheel, which is Royal Mail’s third largest shareholder, became the first investor to publicly oppose the bid.
Co-head of the firm’s value and income team, Ian Lance, said: ‘The potential offer of 320 pence per share significantly undervalues IDS and its future prospects.
“We ask Ofcom to reflect on this offer which we consider opportunistic.”
He added: “We do not believe it is in the interests of Royal Mail shareholders, employees or customers for it to be dissolved or sold.”
Redwheel echoed Royal Mail’s calls for “urgent” reform of the Universal Service Obligation amid a drop in letters sent. The unions oppose Kretinsky’s offer, saying that “handing over ownership to a foreign investor cannot be right.”
And any deal could be reviewed for national security risks. Ministers allowed Kretinsky to increase his stake in Royal Mail when he passed the 25 per cent threshold in 2022.
But analysts have said a full acquisition would likely require authorization under the National Security and Investment Act.
Meanwhile, the Chancellor last week raised concerns about the bid and said there were lessons to be learned from the crisis at Thames Water.
When asked about a foreign takeover of IDS, Jeremy Hunt said: “Should I look at what happened to some of the water companies and say we shouldn’t learn any lessons?” Absolutely not.’