Czech billionaire Daniel Kretinsky’s attempt to acquire Royal Mail’s parent company, International Distribution Services (LSE: IDS), has been rejected. However, his firm, EP Group, remains interested and is considering further options.
EP Group, which already owns 27.5% of IDS, offered a cash purchase of the remaining shares. The bid was denied, but EP Group has indicated a willingness to “engage constructively” with the IDS board.
Under UK regulations, EP Group has until mid-May to submit a formal offer or abandon its pursuit of IDS.
This comes amid Royal Mail’s financial struggles, including declining letter volumes and strike actions. The company proposed cuts to Saturday second-class letter deliveries and reducing weekday deliveries to alternate days.
EP Group acknowledges Royal Mail’s challenges and argues that private investment is essential. They believe Royal Mail, as a “national asset,” would benefit from a long-term perspective and are prepared to support its transformation into a modern postal service.
News of the rejected bid triggered a 29% surge in IDS’s share price on Wednesday.
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