Regulators leave Royal Mail vulnerable to ‘corporate predators’, says investor

One of the top investors in Royal Mail’s owner has said it is vulnerable to “corporate predators”, arguing that a recent takeover bid by a Czech billionaire significantly undervalues the company. Redwheel called for regulators to water down the UK postal service’s legal obligations after Daniel Křetínský’s failed takeover attempt of its parent company International Distributions Services (IDS). It emerged last week that the IDS board had unanimously rejected a £3.1bn bid by Křetínský’s EP Group earlier this month, calling it “opportunistic”. Related: Plans for Royal Mail delivery cuts could risk patient safety, NHS leaders warn Křetínský is considering making an improved offer for IDS, according to reports, and has until 15 May to make a fresh bid under UK takeover rules. Royal Mail has been under pressure for years as the volume of letters continues to decline. The UK regulator, Ofcom, is considering options for the future of the service, including letting it cut the number of days it must deliver letters under its universal service obligations (USO). The USO was well known to the investors who bought shares in Royal Mail when it was privatised in 2013. However, many of the investors now argue that the legal requirement...

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