Royal Mail to hold fresh talks with investors as 'Czech Sphinx' plots another bid for postal service

[TrueBlueTerrier]

https://www.thisismoney.co.uk/money/mar ... rvice.html

Bosses understood to be in regular talks about Daniel Kretinsky's approach
One of the top shareholders, Redwheel, broke cover to oppose the offer
Royal Mail rejected the £3.2bn bid – or 320p per share – from Kretinsky

Royal Mail will hold fresh talks with investors this week as a billionaire dubbed the Czech Sphinx plots another bid for the 500-year-old postal service.

The top brass at Royal Mail owner International Distribution's Service are understood to be in regular discussions about the approach from billionaire Daniel Kretinsky and have been holding talks with shareholders.

IDS will be keen to canvas the opinion of other investors ahead of any further offers.

Talks about the bid will continue this week after one of the top shareholders, Redwheel, broke cover over the weekend to oppose the offer.

This month Royal Mail rejected the £3.2billion bid – or 320p per share – from Kretinsky, who co-owns West Ham United and has a stake in Sainsbury's.

The postal service's board said the offer undervalued the company and was 'opportunistic'. But the tycoon is working on a new proposal and has until May 15 to submit a fresh bid. A deal with Kretinsky would see Royal Mail taken into foreign ownership for the first time since it was established by Henry VIII in 1516.

Redwheel, which is Royal Mail's third biggest shareholder, became the first investor to publicly oppose the offer.

The firm's value and income team co-head Ian Lance said: 'The possible offer of 320p per share significantly undervalues IDS and its future prospects.

'We call upon Ofcom to reflect on this offer which we regard as opportunistic.'

He added: 'We do not believe it is in the interests of the shareholders, employees or customers of Royal Mail for it to be broken up or sold off.'

Redwheel echoed Royal Mail's calls for an 'urgent' reform of the Universal Service Obligation amid a drop in letters posted. Unions oppose Kretinsky's bid, saying 'handing ownership to a foreign equity investor cannot be right'.

And any deal could be reviewed for national security risks. Ministers allowed Kretinsky to up his stake in Royal Mail when it breached the 25 per cent threshold in 2022.

But analysts have said a full takeover is likely to require clearance under the National Security & Investment Act.

Meanwhile the Chancellor last week voiced concerns over the offer, saying there were lessons to be learned from the crisis at Thames Water.

Asked about a foreign takeover of IDS, Jeremy Hunt said: 'Do I look at what's happened to some of the water companies and say that we shouldn't learn any lessons? Absolutely not.'

[iHateD2Ds]

Money talks!The question is much would it take for the major shareholders to buckle and accept Kretinsky’s offer?

[NWpostie]

What about the shares held by posties ?

I've still kept my employee and my IPO shares, I'm not planning to sell as I'm keeping it for the dividend.

[Geordiepapa]

I still have my RM employee shares plus shares I bought as an investment. If he makes a good enough offer then I'd be happy to offload my shares. Their value today sees me making a loss.

[iHateD2Ds]

What about the shares held by posties ?

I've still kept my employee and my IPO shares, I'm not planning to sell as I'm keeping it for the dividend.

Unless you are a major shareholder then you will no choice not to sell.
The offer was poor, Royal Mail has massive potential ,the share price is vastly undervalued and the Czech Sphinx knows this.

[NWpostie]

What about the shares held by posties ?

I've still kept my employee and my IPO shares, I'm not planning to sell as I'm keeping it for the dividend.

Unless you are a major shareholder then you will no choice not to sell.
The offer was poor, Royal Mail has massive potential ,the share price is vastly undervalued and the Czech Sphinx knows this.

I agree it was massively undervalued and I have no intention to sell as I'm not that desperate for the money, I'm thinking in the long term, the dividends over time will be more than the cost of the shares itself.

They will have make me such a fantastic offer to persuade me to sell.

[clashcityrocker]

https://www.msn.com/en-gb/money/other/t ... b4b7&ei=14

[Barnacle]

https://www.msn.com/en-gb/money/other/t ... b4b7&ei=14

I read that report too in a money publication which went on to say that Kretinsky is in talks to take more shares in the steel company until it is more like a 50/50 deal.

Is he really still going to be interested in IDS?

[Barnacle]

Anyone have a Telegraph subscription? The Czech Sphinx has an article saying he has a plan to keep jobs and is preparing an offer for the 13th May.

I think the group as a whole publish the financial results around the 20th May.

[theargyspy]

What about the shares held by posties ?

I've still kept my employee and my IPO shares, I'm not planning to sell as I'm keeping it for the dividend.

Unless you are a major shareholder then you will no choice not to sell.
The offer was poor, Royal Mail has massive potential ,the share price is vastly undervalued and the Czech Sphinx knows this.

I agree it was massively undervalued and I have no intention to sell as I'm not that desperate for the money, I'm thinking in the long term, the dividends over time will be more than the cost of the shares itself.

They will have make me such a fantastic offer to persuade me to sell.

I'm no expert, but a few years ago the company my wife worked for was bought by another company, and she held a number of shares in the company being bought, she didn't have any choice, The board of the company she worked for agreed a price per share and she was given a lump some for the shares she held. The company was taken over and her original shares didn't exist anymore, don't know if the same would apply to us

[postslippete]

I'm no expert, but a few years ago the company my wife worked for was bought by another company, and she held a number of shares in the company being bought, she didn't have any choice, The board of the company she worked for agreed a price per share and she was given a lump some for the shares she held. The company was taken over and her original shares didn't exist anymore, don't know if the same would apply to us

The same would be the case here if Kretinsky's bid was accepted because he made a cash offer to buy the remaining shares

[NWpostie]

I'm no expert, but a few years ago the company my wife worked for was bought by another company, and she held a number of shares in the company being bought, she didn't have any choice, The board of the company she worked for agreed a price per share and she was given a lump some for the shares she held. The company was taken over and her original shares didn't exist anymore, don't know if the same would apply to us

The same would be the case here if Kretinsky's bid was accepted because he made a cash offer to buy the remaining shares

So we could be forced to sell otherwise we will be holding useless shares ?

[TopperGas]

I'm no expert, but a few years ago the company my wife worked for was bought by another company, and she held a number of shares in the company being bought, she didn't have any choice, The board of the company she worked for agreed a price per share and she was given a lump some for the shares she held. The company was taken over and her original shares didn't exist anymore, don't know if the same would apply to us

The same would be the case here if Kretinsky's bid was accepted because he made a cash offer to buy the remaining shares

So we could be forced to sell otherwise we will be holding useless shares ?

You can't be left holding any shares in IDS if a deal is accepted, you'll just be sent the money for whatever shares you own.

[NWpostie]

I'm no expert, but a few years ago the company my wife worked for was bought by another company, and she held a number of shares in the company being bought, she didn't have any choice, The board of the company she worked for agreed a price per share and she was given a lump some for the shares she held. The company was taken over and her original shares didn't exist anymore, don't know if the same would apply to us

The same would be the case here if Kretinsky's bid was accepted because he made a cash offer to buy the remaining shares

So we could be forced to sell otherwise we will be holding useless shares ?

You can't be left holding any shares in IDS if a deal is accepted, you'll just be sent the money for whatever shares you own.

How is this decided ?

Just curious.

*Hope it's a very generous offer well beyond the initial £3.30 IPO price which topped at £6.00 a share at one stage, £10 per share would cover future loss of dividends.

** I hold 2 set of shares one given by Royal Mail and the other is the IPO shares, would I get money for both ? I take it has to be voted on and accepted at a shareholders meeting first.

[Mr Rush]

I'm no expert, but a few years ago the company my wife worked for was bought by another company, and she held a number of shares in the company being bought, she didn't have any choice, The board of the company she worked for agreed a price per share and she was given a lump some for the shares she held. The company was taken over and her original shares didn't exist anymore, don't know if the same would apply to us

The same would be the case here if Kretinsky's bid was accepted because he made a cash offer to buy the remaining shares

So we could be forced to sell otherwise we will be holding useless shares ?

You can't be left holding any shares in IDS if a deal is accepted, you'll just be sent the money for whatever shares you own.

Tell Sid 'bend over'. So much for the Thatcherite vision of a nation of small shareholders - more like oligarchs striding across Yeltsin's Russia scooping up the nation's inheritance from a populace more urgently seeking to divest their assets into loaves of bread.

Woe, if only it was possible to book leave to attend the AGM to assist the lot of them in exiting through the fenestrae of whichever venue is hosting the black mass.