Czech Sphinx raises stake in Royal Mail for the second time this week
The Czech Sphinx increases its stake in strike-tired Royal Mail for the second time this week
Royal Mail’s largest investor has raised its stake for a second time this week as the company remains embroiled in crisis talks with unions.
Daniel Kretinsky, a Czech billionaire, increased his stake in parent company International Distributions Services from 24 percent to 25 percent through his vehicle Vesa Equity.
It followed a revelation this week that he increased his stake from 23 percent to 24 percent and is likely fueling speculation that the “Czech Sphinx” is considering a buyout.
Inset: Daniel Kretinsky (pictured), a Czech billionaire, increased his stake in Royal Mail parent company International Distributions Services from 24% to 25%
Under city rules, an investor must make a takeover bid on a company if its stake is 30 percent or more.
Royal Mail bosses met with unions yesterday to try to resolve a long-running labor dispute amid reports it could bring in administrators if more strikes are announced by the Communication Workers Union, which represents 115,000 postmen.
Royal Mail has said strikes would endanger ‘the job security’ of its postmen.
Tim Symes, insolvency specialist at law firm Stewarts, said any deal could have “potentially catastrophic consequences”.
He added: “Once it’s under control there will be immediate cost cutting, and so significant amounts of jobs are at stake.”