Daniel Křetínský's EP Group proposed a takeover bid for IDS (the owner of Royal Mail), sending IDS shares higher and including a final and special dividend; the board signaled it might recommend the offer amid political uncertainty ahead of a UK general election.
Royal Mail's parent company International Distribution Services (IDS) soared 20% at one stage on the news that a new bid was proposed by Daniel Křetínský's EP Group.
Trading at 317.53p the London-listed share was up around 46p or 17%.
An offer of 360p per share represents a substantial premium over previous valuations, and, evidently, it is being taken seriously by the stock market.
Daniel Křetínský's offer would include a final dividend and a special dividend, to sweeten the pay-out to shareholders.
The board's inclination to recommend this offer underscores the strategic value and growth potential seen in IDS.
What it means for the Royal Mail and its universal service obligations to the British public remains to be seen, and, similarly it is also unclear how much of a political football it will become given that the UK is heading toward a general election.
