Foreign swoop on Royal Mail 'to be approved': Czech Sphinx billionaire set to reach agreement with ministers

[TrueBlueTerrier]

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

The takeover of Royal Mail by a Czech billionaire looks set to be approved by ministers.

It places the postal service into foreign hands for the first time in its 508-year history.

Trade union bosses representing around 100,000 posties told their members it was 'likely the Government will clear' the £3.6billion sale to Daniel Kretinsky on national security grounds.


The Communication Workers Union (CWU) also said it 'anticipates' ministers will reach an agreement with Kretinsky and his backers over safeguarding its future.

Union bosses have drawn up an 'engagement plan' in a bid to get the best deal for staff – including higher pay and more favourable working conditions.

'It is clear in meetings with the company, prospective buyer, government, and regulator, that we have a major opportunity to influence the future through our collective strength,' said CWU general secretary Dave Ward in a letter to members.

He added: 'We need to work on the basis that it is likely the Government will clear the takeover bid from the perspective of the national security investigation.'

Royal Mail, which traces its roots back to the Master of Posts established by Henry VIII in 1516, is set to be taken over by Kretinsky, 49, in a swoop on its parent company International Distribution Services (IDS).

An energy baron nicknamed the Czech Sphinx, he already controls nearly 28 per cent of IDS through his vehicle Vesa Equity.

But in May he tabled an offer for the rest of the business which was accepted by the IDS board, sparking fears over its future.

In its manifesto, Labour pledged to ensure any takeover of Royal Mail was 'robustly scrutinised'. A review under the National Security and Investments Act was launched in August.

Kretinsky has offered a series of promises on jobs and the Universal Service Obligation (USO) – to deliver post across the UK six days a week at a single price – to win support for the deal.

However, many remain concerned over the implications for Royal Mail given the promises are limited to five years at most.

Ward said the CWU has been in talks with Kretinsky's representatives and Royal Mail bosses and that a crucial two-day meeting with the Czech billionaire's EP Group is due to take place next week.

'It is vital that all members now get behind the union to help us create the leverage needed to demand a fresh start for Royal Mail, the service and most importantly you as frontline workers,' he added.

IDS will publish half-year results tomorrow while Business Secretary Jonathan Reynolds is expected to face questions from MPs about the deal at a meeting of the House of Commons business select committee on Tuesday next week.

[posted]

Is there actually any official Gov announcement re this stage of the scrutiny?
Obviously i know journos have their sources but they also have a habit of sensational talking points... especially when owned by Tabloid rags

I'm sure Security report was due to be completed by Friday

[milly]

Is there actually any official Gov announcement re this stage of the scrutiny?
Obviously i know journos have their sources but they also have a habit of sensational talking points... especially when owned by Tabloid rags

I'm sure Security report was due to be completed by Friday

Of course he'll reach agreement with Labour ministers, since when have Labour cared about private sector workers?

[the beautiful bd south]

What happens if the share price rises above the offered takeover price?
Currently around 3.53 just 7p under the offer (- proposed dividend).
Surely it couldn't be taken over at less than market value?

The major players always said that the offer didn't reflect the potential.

[Strong bull]

Does anyone know what was the vote by the shareholders was.