-

Royal Mail takeover bid rejected, but another possible

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 …

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.


Subscribe to Investomania for more International Distribution Services news and updates.

Sign up for Investomania

Subscribe to the Investomania newsletter to have our daily recap delivered directly to your inbox.

No spam. Unsubscribe anytime.