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Britian's business minister Kemi Badenoch is set to meet the chief executive of Royal Mail's owner IDS to discuss the takeover offer from Czech billionaire Daniel Kretinsky.
"[Badenoch] is meeting the chief executive officer of Royal Mail’s parent company to discuss this and other matters,” a spokesperson for Rishi Sunak explained.
Reports this morning revealed the UK government had not planned to intervene in the sale.
However, the government may be able to block the deal under the National Security and Investment Act, which a Whitehall representative said was being monitored “very closely
I can't resist it:
The Govt DID NOT SAY: "...and make a bid for IDS".
Only YOU said that, you are 100% making that bit up. If you still think I am wrong then please point me to a source for this. You won't though because you can't and your insults will not disguise the fact.
Holding. Roughly a 25% ROI at the moment but I'm not desperate.
What are people's plans? Buy the rumour sell the news? Or is it better to hold?
@monkeyshark
"Your sister called and said she wants her underwear back. I told her it was definitely weird and she should probably get the authorities involved.
Hahaha!"
I know this not to be true because my sister died in Nov23 of stomach cancer at age 57. Yet again you seem to have your facts wrong ;)
Hmmm always interested in hearing other views. Why do you think it should be called in? What do you see as the perceived/actual risk? I've had a glance at the attached risk register and yes it may be linked in some way to some of those listed. I have only read through once and although it specifically mentions telecommunications it doesnt mention delivery services. As I say it may be covered elsewhere or in other documents.
@monkeyshark
"I'm not going to be drawn into a zero sum game with an idiot."
Roughly translated, I'm bowing out now before this gets anymore embarrassing for me lmfao. What a pen7s. Hmmmmmm
Daniel Kretinsky will buy the business for 3.60 per share plus 10p dividend there is no doubt about that. That’s why he is a billionaire. Don’t sell now get the best offer.
What has changed ??
"acquisitions are assessed on a case by case basis" the previous review was solely concerned with the increase from 22% to 27.5%.
What has changed is that Mr K is proposing a further acquisition, this time for the entire shareholding - an event significant enough to warrant a further review under the Act.
The following language you use: "...original clearance to take the bid above 25%" is misleading - at that time there was no Bid, it was an acquisition of a further 5% of shares and that is all that was assessed at the time.
At the end of the day you might be right in that the Govt won't call it in but they could and in my view they absolutely should.
Always happy to debate facts but playground bullies are a waste of time so that's it from me for the moment.
Sid the problem here is that website have are known for talking absolute *****
.......someone getting his backside handed to him once again
The geezer has no shares its all an utter fantasy in his head contradicting himself constantly
Now watch him back trawl.....quite pathetic and how his abuse of others is allowed to continue one can only wonder
"Where did I say the bid was approved long ago?"
err... in the bit where you say explicitly: "The bid was approved a long time ago by the relevant governmental department", I copy pasted it from your post on 15 May 16.07
And the 'piece of legislation' you refer to is the 'National Security and Investment Act (2021) under which a review was called in on the raising of Mr K's shareholding from 22% to the current 27%. The result at the time was 'No further action'.
press release here:
https://www.gov.uk/government/news/government-to-take-no-further-action-under-the-national-security-and-investment-act-2021-on-royal-mail-share-acquisition
I would draw your attention to the following extract from the release:
"Following careful consideration, the government will take no further action on the acquisition of increased shareholdings by Vesa Equity Investment in Royal Mail and a Final Notification has been issued to parties.
The government will not hesitate to act to prevent risks to the UK’s national security where we judge action is necessary. Under the National Security and Investment Act (2021) acquisitions are assessed on a case-by-case basis, so any future acquisition could be subject to a separate assessment under the Act if deemed necessary."
Your constant insults to other posters here is tiresome and when you suggest "taking reading lessons or understanding the situation... (sic)" when you clearly didn't read my earlier post and clearly don't understand how the NSI Act works then it makes you look a little foolish
Bigtime
Because many will have bought in at 200 (or less as I did) to 240 ish and are sat on decent profit. There has been no dividends recently
Yes a rise to 360p would give additional profit but a drop to 280p on an unsuccessful bid will likewise hit the pocket
I have taken half off the table
Money Shark when did the Government sell its 30% shares in ids?
Just done a tour of all the wires and overall consensus seems to be the bid is not high enough to get the level of support required
Clearly the SP would drop somewhat but clearly wont tank per se
I can’t understand people selling, when you will receive 3.60p per share plus a dividend of 10p
MoneyShark
Glad to see I've managed to nudge you from nobody up to 1%
Whilst I'm here, you said earlier:
'The bid was approved a long time ago by the relevant governmental department and it was given a fat green light, hence why an extremely wealthy knowledgeable investor like Kretinsky has taken the time to put the bid together....'
Clearly sounds like you're a fan of Mr K but can you enlighten us as to how you know the bid was approved a long time ago ?
From memory I believe there was a review called in under the NSI act back in 2022 when he raised his stake to 25+% but the outcome was 'no further action'. However, I'm assuming you are not referring to this as it has no bearing on a subsequent bid.
Money, I thought it was 2p with additional 8p subject to a yes vote? My comment was conjecture based upon a no vote.
10p Divi is worth about 5k, definitely rejecting the bid...
I would vote no, with my relatively miniscule holding. Largely for emotional reasons as I am certainly one of the members of the public who do give a F*ck. Contrary to Mr Moneyshark's view that there will be no public backlash I think there absolutely will be and the Govt will be under pressure to at least review the deal should a firm offer appear.
Given the impending election I am certain Sunak will not wave this through. Selling off the 'Posties' to a Foreign Investor, (from Eastern Europe...) would not be a good look and a review would take it past the election and the next Labour Govt (likely) will not allow it.
Accepting Kretinsky's offer will be a proverbial "shot in the foot" on IDS's part. It also calls into question the possibility of limiting the scope of mandatory services and the entire activity of Royal Mail. The new investor will suck valuable assets out of the company, leaving the rest at the mercy of the government. So in the future we will have to assume either the collapse of this remnant of Royal Mail or its costly re-nationalization and its future long-term deficits financed by taxpayers. On the other hand, IDS will introduce competition to the British courier services market, giving it access to both extensive infrastructure and, more importantly, to the database of the largest customers. And it's not just about domestic shipments within the UK, but also about the most profitable international shipments for the company. Well, probably as a result of this, in a few years IDS will disappear from the market and its most valuable content will be taken over by Mr. Kretinsky.
Personally, I hope that these threats as well as national security issues are recognized by the Government and Parliament by blocking this transaction. Even if the next owner of the office at 10 Downing Street will be the Labor Party, which supports re-privatization, it must be remembered that they will have to find funds to save the remains of Royal Mail, jobs, and long-term subsidies for its services. Today, the only reasonable option seems to be the option of limiting the scope of mandatory basic services and blocking the takeover of IDS, with the option of forcing Kretinsky to sell its shares or limiting the scope of his voting rights.
@Hounddog, thanks for clarifying what kretinsky's options are and the necessary % of votes each of the options require to give him control. To me it appears that the scheme of arrangement is the way he will go. However, it could be quite a big ask to get a 75% yes vote from those who do vote.
If, as you say Kretensky's personal holding of 27.6% is disqualified from the process then the voting rights attached to shares eligible to vote becomes much more heavily weighted. i.e. 100% of the vote will be represented by 690 million shares. As an example, Redwheel have approximately 50 million shares, which is around 5% of the 950 million total ids shares. However, when it comes to a vote without kretensky's 260million shares Redwheel will have 50 million of 690 million shares, which would represent approx 7.2% of the vote. Redwheel I believe stated that GLS alone was worth 350p so may be against the proposal.
The result is by no means clear cut and there is certainly risk attached to sticking or twisting. The only certainty is that if you sell now you will know how much money you made. If you hold there is potential for either a big upside or possibly larger downside.
Things will be clearer at the end of this month when he makes a binding offer, because so far he hasn't put any money on the table.
If takeover fails, 2p dividend is one reason it could tank, though I very much doubt it would drop as low as 220. Results in a week would likely have biggest effect on where sp settled. Foreward looking statements should be interesting in a world of ifs and buts. Whatever happens Royal Mail has rarely been dull and often a great learning process.
I never asked you .The question was to people on here who are normal