Promises by tycoon Daniel Kretinsky over Royal Mail takeover must be watertight, says Post Office minister
PROMISES by tycoon Daniel Kretinsky over his Royal Mail takeover must be watertight, the Post Office minister says.
Kevin Hollinrake wants the Czech businessman’s undertakings tested ahead of the £36billion deal.
They include a five-year commitment to maintain first-class deliveries, not to trigger a break-up of the Royal Mail — and to keep its branding and its UK HQ.
Mr Kretinsky yesterday took his 370p-a-share bid directly to investors — and included a sweetener to give Royal Mail workers shares.
Some 6 per cent of Royal Mail’s parent company International Distribution Services is owned by posties, after they were given shares as part of its 2013 listing.
Takeover documents released yesterday revealed Mr Kretinsky is open to giving a “profit-sharing mechanism to all employees”. It is thought to be an olive branch to get Royal Mail’s noisy union onside and appeal to a possible new government.
Disruption from strikes cost Royal Mail £600million in losses last year.
Mr Hollinrake told The Sun he recently met Mr Kretinsky to discuss the bid.
He viewed him as “considered and straightforward”.
The minister added: “He didn’t strike me as someone who’s going to radically change the business, but run it in private ownership.”
A spokesman confirmed Mr Kretinsky met Mr Hollinrake on June 13 — and not Business Secretary Kemi Badenoch as was reported. Mr Hollinrake stressed: “Royal Mail — given its history and importance to every person in the UK — must be reviewed.
“Every aspect must be considered and we’ll look closely at these undertakings.
“Commitments have to be watertight because private companies have a history of not adhering to them.”
He cited Kraft, which bought Cadbury, as an example. The minister added: “I can’t think that any government wouldn’t want to call it in for review, especially [a firm] that is dear to so many hearts.”
The Government has already said the bid would be subject to a national security review.
Concerns this and investor opposition could derail the takeover has meant IDS’s share price is still below Mr Kretinsky’s offer.
The takeover documents revealed that bankers, PRs and lawyers will share in a £130million fee bonanza if the bid does go through.
MAD AT MAXX
ONE of the UK’s biggest investors is selling its stake in retailer TK Maxx’s owner for “failing to meet expectations” on environmental concerns.
Legal & General Investment Manager said TJX does not disclose carbon emissions across its supply chain or have a policy to ensure forests are not cleared to make its fashions and homewares.
LGIM is also selling its stake in miner Glencore for failing to disclose whether it plans to ignore the Paris climate change agreement and increase coal production.
THE number of job postings has slumped by 20 per cent in the past year, according to jobs site Indeed.
In signs that the labour market is dramatically cooling, the number of vacancies advertised is now 0.9 per cent below pre-pandemic levels.
THEME’S PROFIT
A NEW UNIVERSAL theme park in Bedford will lift the UK economy by £50billion, developers claim.
The company’s first park in Europe plans to open all year and include a 500-room hotel.
Universal’s US site in Orlando, Florida, has rollercoasters and Jurassic Park and Harry Potter rides.
Universal will bypass local councils and file plans directly with the Government.
It says building the 476-acre site will create 20,000 jobs during construction and 8,000 at the park in the long term.
DASH FOR DELIVEROO
TAKEAWAY app Deliveroo could be gobbled up after an approach by much larger US rival Doordash.
DoorDash is valued at £35billion, compared with the London company’s £2billion valuation.
Takeover talks have stalled over price, according to Reuters. However, analysts at Jefferies reckon “this may only be the start” of the action.
Winning over Deliveroo founder Will Shu, who has a 6 per cent stake, and online giant Amazon, which has a 10 per cent stake, will be key.
AO CHIEF: POLITICS FAILING YOUNG
THE boss of AO World has accused politicians of not doing enough to help young people get a better start in life “because they don’t vote”.
John Roberts wants an urgent shake-up of the apprenticeship levy.
He claims the £4billion it has raised since 2017 has swollen Treasury coffers but not helped to create the training it was intended for.
However, he said that Shadow Chancellor Rachel Reeves had ignored his advice and “the silence has been deafening” from Labour on the issue.
He also took a swipe at current Chancellor Jeremy Hunt, accusing him of not being able to give a straight answer to his questions.
He added: “Jeremy Hunt and all politicians are incapable of straight-talking. They have to dress things up and put so much lipstick on the pig you can’t see the pig any more.”
His comments came as AO World reported that its annual profits almost trebled to £34million. He said he was focused on keeping the company “reassuringly boring” rather than reviving the idea of overseas’ expansion.
Its TV sales have jumped by 54 per cent during the Euros football while wet weather prompted a 115 per cent rise in tumble dryer sales.
NO BLOCK FOR RISE OF SHEIN
THE financial watchdog may not be able to properly check fast fashion firm Shein‘s claims that it complies with UK Modern Slavery laws, The Sun understands.
Human rights group Stop Uyghur Genocide yesterday launched a legal campaign to block Shein’s listing on the London stock market.
It alleges Shein’s cotton supply chain uses forced labour from China’s Xinjiang region and has hired lawyers at Leigh Day to urge the Financial Conduct Authority to stop the retailer’s £50billion float.
The campaign group also wants more proof that Shein is not in breach of the UK’s Modern Slavery Act.
But sources said the FCA has no enforcement powers over the issue. Shockingly, it is also not the watchdog’s role to verify if a company’s claims are true.
This means investors’ only option is to sue the business if they have lost money because claims turn out to be false.
PHOENIX SUN SALE
INSURANCE giant Phoenix Group is exploring the sale of its SunLife brand.
It said it had already received interest from buyers for the over-50s’ insurance, equity release and funeral cover firm.
But analysts viewed the disposal as “slightly odd” as it continues to deliver value.
FTSE 100 company Phoenix bought SunLife as part of a £375million deal in 2016.
The division made a £16million profit last year.