Royal Mail owner rejects approached bid from Czech billionaire

dailyrecord.co.uk:

Royal Mail owner International Distribution Services has seen shares soar even higher after it was revealed the group rejected a takeover approach from shareholder and Czech billionaire Daniel Kretinsky.

Mr Kretinsky's EP Group said it put forward the all-cash proposal on Monday, April 9 to buy the shares in International Distributions Services (IDS) that it does not already own.IDS confirmed that it had considered the offer but ultimately concluded that it "significantly undervalues IDS and its future prospects" and therefore the board unanimously rejected it on April 11.It also branded the timing of the proposal as "opportunistic".The group said: "It does not reflect the growth potential and prospects of the company under a new management team, a significant modernisation programme underway at Royal Mail, and the ongoing review by Ofcom in relation to the Future of the Universal Service Obligation."The sprawling EP Group conglomerate - which has interests spanning energy, logistics and food retail - has already built up a stake of around 27.5 per cent in the Royal Mail owner through Mr Kretinsky's Vesa Equity Investment vehicle, making it the biggest investor in IDS.It said that although the takeover proposal was rejected by the IDS board, it would continue to "engage constructively with the board as EP Group considers all its options".Shares in IDS jumped nearly 30 per cent in late Wednesday afternoon, April 17, trading after news of the approach was confirmed following reports of bid interest.EP Group said it recognises the "challenging situation" faced by Royal Mail, but would be prepared to support "this iconic business as it transforms and rebuilds into a modern postal operator".It said: "Weak financial