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The Czech billionaire bidding for Royal Mail was today warned he must pass national security tests and meet trade union demands to avoid his £3.5 billion takeover plans being scuppered.
Chancellor Jeremy Hunt said the Government would examine ‘risks’ posed by Daniel Kretinsky’s offer for the British institution.
And the boss of the Communication Workers’ Union threatened strike action if its demands on working conditions and the universal service were not met.
Royal Mail owner International Distribution Services (IDS) this week said it was ‘minded’ to accept the offer from Mr Kretinsky – a businessman known as the Czech Sphinx who already owns a big stake in the company as well as interests in West Ham FC and Sainsbury’s.
But he faces growing pressure to guarantee that vital services are protected – with Business Secretary Kemi Badenoch asking for cast-iron guarantees that its six-days-a-week service is maintained and campaigners demanding that the sale be blocked.
The Czech billionaire, Daniel Kretinsky, bidding for Royal Mail was today warned he must pass national security tests and meet trade union demands to avoid his £3.5 billion takeover plans being scuppered
Chancellor Jeremy Hunt said the Government would examine ‘risks’ posed by Daniel Kretinsky’s offer for the British institution
Royal Mail owner International Distribution Services (IDS) this week said it was ‘minded’ to accept the offer from Mr Kretinsky – a businessman known as the Czech Sphinx. Pictured: A postman loads his vehicle in London
Mr Hunt said the UK broadly welcomed international investment and that its ‘openness to companies from overseas’ helped it attract more funds than any other country in the world except for the United States and China. ‘We will continue with that approach,’ he said.
‘But we do always look at national security considerations and make sure that in terms of our core infrastructure there are no risks to those going forward and any bid for Royal Mail would go through that normal process.’ The comments appear to suggest that Mr Kretinsky’s bid could be called in by the Government for scrutiny under the National Security and Investment Act, which has protecting the country’s communications among its remit.
Dave Ward, general secretary of the CWU, raised the spectre that under new ownership the business will continue to be wracked by the industrial disputes that have tormented it for years.
He told the Financial Times the union had decided to ‘take whatever steps necessary’ to protect employment conditions and Royal Mail’s universal service obligation – which commits it to deliver letters and parcels across the country at the same price, six days a week.
‘There are certain things that if they are attacked, we would take industrial action. We would call a ballot of our members.’
The 508-year-old postal service was privatised in 2013 but it has struggled financially and has seen its share price plunge. Next week’s annual results from IDS – which also owns a profitable European parcels business – are expected to lay bare the Royal Mail’s dire performance with the company losing nearly £1 million a day.
Business Secretary Kemi Badenoch is asking for cast-iron guarantees that its six-days-a-week service is maintained and campaigners demanding that the sale be blocked
The 508-year-old postal service was privatised in 2013 but it has struggled financially and has seen its share price plunge. Pictured: A postman delivers letters in Bath, Somerset
Vince Cable – the Liberal Democrat politician who led the privatisation – today defended his actions, which at the time saw the Government accused of selling the company on the cheap. He said its recent share performance vindicated the decision to sell at the price it did
Steve Tuckwell, a Tory MP and a former postman, said services needed to be protected if the takeover went ahead. ‘While Royal Mail has to adapt, it has to be under the right circumstances. I would call for services to be protected – not just protected but improved.’
Vince Cable – the Liberal Democrat politician who led the privatisation – today defended his actions, which at the time saw the Government accused of selling the company on the cheap.
He said its recent share performance vindicated the decision to sell at the price it did. Mr Kretinsky’s offer is just 40p more than the 330p share price in 2013.
‘It’s a company with very deep problems stemming from the decline of its core business [letters],’ Mr Cable told the Mail.
Steve Tuckwell, the Tory MP for Uxbridge and South Ruislip and a former postman, said services needed to be protected if the takeover went ahead. ‘While Royal Mail has to adapt, it has to be under the right circumstances. I would call for services to be protected – not just protected but improved.’
The Department for Business and Trade said: ‘There are formal processes in place in relation to the National Security and Investment Act which will take place before any bid is finalised.’
