Related Articles
Royal Mail is pressuring regulators to approve plans for less frequent letter deliveries, as the company scrambles to fend off a £3.1bn takeover bid from a Czech billionaire.
International Distributions Services (IDS), Royal Mail’s parent company, said foot-dragging by Ofcom had “held back” plans to modernise the company.
Keith Williams, chairman of IDS, said: “Reform is in the regulator’s hands and we urge Ofcom to accelerate their review.”
The pressure for the regulator to move quicker comes after Royal Mail last week rejected a shock takeover approach by Daniel Kretinsky, known as the “Czech sphinx”.
In a statement last week, Mr Kretinsky’s EP Group, which made the approach, specifically highlighted Royal Mail’s “slow transformation” as a factor putting the business under “unsustainable pressure”. The company said private investment would help to turn around the company.
Mr Kretinsky, who also holds stakes in Sainsbury’s and West Ham Football Club, is expected to table a new offer for IDS ahead of a May 15 deadline set under City takeover rules.
Ofcom is currently consulting on the future of the so-called universal service obligation (USO) that requires Royal Mail to deliver letters six days a week.
Royal Mail has set out proposals to deliver second class post just three times a week in a move bosses said could save the company £300m a year.
In a statement on Monday, IDS said: “These changes should be enacted quickly by Ofcom through changes to postal regulations and conditions and do not require legislation.”
In its submission, published in full on Monday, Royal Mail outlined plans to deliver second class letters and bulk business mail on every other weekday, while first class post would continue to be delivered six days a week.
Source link
