Disgust as ‘Czech Sphinx’ billionaire named in Panama Papers buys Royal Mail

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The Communication Workers Union has slammed the £5billion sale of Royal Mail to ‘Czech Sphinx’ billionaire Daniel Kretinsky, with demands for 150,000 jobs to be secured

A union boss slammed Royal Mail for a £5billion sell-off to a controversial billionaire, dubbed the Czech Sphinx.

Royal Mail’s parent firm International Distribution Services said it agreed to the takeover offer by Daniel Kretinsky, 48. Communication Workers Union chief Dave Ward demanded 150,000 jobs be secured.

He told the Mirror: “This is a disgusting deal which will reward the failures of the Royal Mail board – their executives will make hundreds of thousands of pounds from this deal. We just can’t have a carve-up between the Royal Mail board and a private equity company.”

Mr Ward demanded no one should be made compulsorily redundant, adding: “This is the time to ‘Back your postie’.” The union will take part in talks next week with Mr Kretinsky over jobs. His deal includes commitments to retain Royal Mail’s name, brand, UK headquarters and UK tax residency, plus protections for staff benefits and pensions.

Shadow Business Secretary Jonathan Reynolds said Royal Mail is an iconic British institution, adding: “Labour will take the necessary steps to safeguard its identity and place in public life.” Mr Kretinsky, nicknamed for being tight-lipped, said he had “the utmost respect” for 500-year-old Royal Mail.

The part-owner of West Ham United and Sainsbury’s was also named in the offshore Panama Papers. IDS Chairman Keith Williams said it had negotiated a “far-reaching package of legally binding undertakings and commitments”.

These cover the one-price-goes-anywhere universal service including first-class letters are delivered six days a week. The deal needs to be approved by IDS shareholders at the AGM on September 25. It could be blocked by No10 under the National Security and Investment Act.