## Royal Mail Rejects Takeover Bid from Czech Billionaire
International Distributions Services (IDS), the parent company of Royal Mail, has rejected a takeover bid from Czech billionaire Daniel Křetínský's EP Group. This decision signals IDS's desire to remain independent despite facing challenging market conditions.
Křetínský, known for his diverse business interests, approached IDS with an undisclosed offer earlier this month. While the bid was rejected, EP Group expressed its intention to engage constructively with the company's board.
EP Group acknowledges Royal Mail's current struggles, including weak financial performance and slow transformation in the changing postal market. However, they emphasize the importance of private investment in facilitating the company's modernization and sustainable growth.
News of Křetínský's approach led to a 20% surge in IDS shares, reflecting investor interest in the company's future. Křetínský, with the help of advisors, had been evaluating a potential bid for IDS in recent months.
IDS, which includes Royal Mail and General Logistics Group (GLS), faces critical decisions regarding its future. The industry regulator, Ofcom, has proposed scaling back Royal Mail's universal service obligations to address mounting losses. However, the government opposes reducing the six-day-a-week delivery service.
Royal Mail's request to modify its delivery schedules and reduce costs highlights its efforts to adapt to the evolving market. Any takeover bid would undergo scrutiny under national security laws, with Labour MP Kate Osborne advocating for renationalization of Royal Mail.