Royal Mail in Fresh Talks with Investors as Kretinsky Plots New Bid
Quote from VATcal on 22/04/2024, 20:09Royal Mail is set to hold further discussions with investors this week as Czech billionaire Daniel Kretinsky, nicknamed the "Czech Sphinx", prepares another offer for the historic postal service.
Management at International Distributions Services (IDS), which owns Royal Mail, are understood to be in regular communication regarding Kretinsky's approach. Talks have also been ongoing with shareholders. IDS is keen to gauge investor sentiment before any revised bids are submitted.
Earlier this month, Royal Mail rejected Kretinsky's £3.2 billion offer, valuing each share at 320p. The board felt the proposal undervalued the company and was opportunistic. However, the billionaire is believed to be working on a new proposal, with a deadline of May 15th to submit a fresh bid.
If successful, a deal with Kretinsky would see Royal Mail become foreign-owned for the first time since its establishment by Henry VIII in 1516. Redwheel, Royal Mail's third-largest shareholder, has already become the first investor to publicly oppose the initial offer.
The upcoming talks come amid a period of uncertainty for Royal Mail. The company faces challenges including increasing competition in the delivery sector and ongoing industrial disputes with trade unions. Kretinsky's revised offer is likely to be a key topic of discussion for investors and management alike.
Royal Mail is set to hold further discussions with investors this week as Czech billionaire Daniel Kretinsky, nicknamed the "Czech Sphinx", prepares another offer for the historic postal service.
Management at International Distributions Services (IDS), which owns Royal Mail, are understood to be in regular communication regarding Kretinsky's approach. Talks have also been ongoing with shareholders. IDS is keen to gauge investor sentiment before any revised bids are submitted.
Earlier this month, Royal Mail rejected Kretinsky's £3.2 billion offer, valuing each share at 320p. The board felt the proposal undervalued the company and was opportunistic. However, the billionaire is believed to be working on a new proposal, with a deadline of May 15th to submit a fresh bid.
If successful, a deal with Kretinsky would see Royal Mail become foreign-owned for the first time since its establishment by Henry VIII in 1516. Redwheel, Royal Mail's third-largest shareholder, has already become the first investor to publicly oppose the initial offer.
The upcoming talks come amid a period of uncertainty for Royal Mail. The company faces challenges including increasing competition in the delivery sector and ongoing industrial disputes with trade unions. Kretinsky's revised offer is likely to be a key topic of discussion for investors and management alike.
