Czech billionaire Daniel Kretinsky has had his bid to buy International Distribution Services (IDS), which owns UK postal firm Royal Mail, rejected.
Kretinsky’s company EP Corporate Group, which already owns 27.5% of IDS, made the 320p per share offer on April 9 but was rebuffed by IDS which said the bid “significantly undervalues IDS and its future prospects”, according to Reuters.
IDS added, “The timing of the proposal is opportunistic. It does not reflect the growth potential and prospects of the company under a new management team.”
Responding to the news of the failed bid, EP Corporate Group said in a statement, “While EP Group’s proposal was rejected by the board of IDS, it looks forward to continuing to engage constructively with the Board as EP Group considers all its options.”
It continued, “Weak financial performance, poor service delivery and a slow transformation, in the face of a market going through structural change, have put the business under unsustainable pressure. With the increasing competition from multinational companies in the UK postal market, private investment in Royal Mail becomes crucial.”
Under UK rules that govern takeover bids for public companies, EP now has until May 15 to put forward another offer, although it is not clear if it would do so.