Top Royal Mail investor would back bid from ‘Czech Sphinx’ billionaire
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Top Royal Mail investor would support ‘Czech Sphinx’ billionaire Daniel Kretinsky’s offer if the price was right
A leading Royal Mail shareholder said it would support a takeover bid from Czech billionaire Daniel Kretinsky, but only at the right price.
The top ten investor admitted that backing a buyout of parent group International Distribution Services (IDS) would be a “difficult” decision and likely to generate “a lot of political backlash.”
But the shareholder, who declined to be named because of the sensitivity surrounding the subject, said an offer worth “much more than” 400 pence per share from Kretinsky – nicknamed the Czech Sphinx for his inscrutable demeanor – should be considered. .
Takeover target? Billionaire investor Daniel Kretinsky (pictured) owns 23% of Royal Mail’s parent company, International Distribution Services
The stock is trading at 230.9p, giving the company a value of £2.21bn.
Kretinsky already owns 23 percent of IDS through his company Vesa Equity Investment and there is plenty of speculation that he wants to buy the company outright.
Such a move is likely to spark a political backlash and spark union opposition amid fears for jobs and working conditions.
The Communication Workers Union (CWU), which represents around 115,000 postal workers, is already embroiled in a bitter dispute with management that has sparked a wave of strikes and cost Royal Mail £200 million.
Kretinsky made most of his money by buying up Czech power plants and owns the largest energy concern in Central Europe.
The 47-year-old also owns football club Sparta Prague and has a stake in West Ham United where he is a director.
The anonymous shareholder, meanwhile, admitted to being frustrated by the growing problems facing Royal Mail.
The “ideal outcome” would be for the bosses to strike a deal with the unions and continue their modernization plans, the investor said.
But if this proved impossible, they would consider supporting measures to separate Royal Mail from the much more successful international company GLS. IDS management has warned twice that splitting the company is a considered option.
The investor said mounting losses are “unsustainable” and when asked if they would support a Kretinsky takeover, the shareholder said, “It depends on the price.”
If Vesa offered 400 pence per share, I’d probably say no. If they offered a lot more, maybe they would.’