Royal Mail faces takeover bid from Czech billionaire

His ownership of significant stakes in Royal Mail and Sainsbury’s has forced him to be more open and, in his first British interview last year, he pledged to keep Royal Mail listed on the stock market, saying it was good if “every British citizen can invest in the shares”.

Royal Mail was privatised in 2013 by the then-coalition government led by the Conservatives and Liberal Democrats, leaving it vulnerable to takeover bids.

The Government has powers under the National Security and Investment Act to probe deals that affect nationally important assets.

In August 2022 the business department under Kwasi Kwarteng launched a review of Mr Kretinsky’s plans to increase his stake in Royal Mail from 22pc to 25pc, ultimately clearing the deal.

Despite an initial share price spike after listing, Royal Mail has struggled with increased competition since then and the stock is down almost 50pc since its debt.

The company has repeatedly fallen short of delivery targets and was fined a record £5.6m by regulator Ofcom last year after it failed to deliver more than a quarter of first class post on time.

Earlier in April, the company set out proposals to deliver second class letters just three times a week and water down quality of service targets. It said the moves would help it to save up to £300m.

The changes are being reviewed by Ofcom as part of a consultation on the universal service obligation. It is due to provide an update in the summer.

However, the watchdog has already warned that quality of service must not be reduced as part of any reform. The planned changes have already been met with opposition from Prime Minister Rishi Sunak, who said the Government was committed to Saturday letter deliveries.

The crisis has posed a major headache for Martin Seidenberg, chief executive of IDS who took over the top job last year. In March he appointed Emma Gilthorpe, a former Heathrow executive, as chief executive of Royal Mail. She is the postal service’s fourth boss in five years.

Royal Mail also comes under recent pressure after an investigation by The Telegraph revealed that China was flooding Britain with counterfeit stamps.

Royal Mail was contacted for comment.