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Well if the Telegraph is to be believed everyone know what he's doing.
Surely the SP has to be above 3.20 by noon on Monday now?
That's why Daniel Kretinsky is a billionaire and you are not. He knows what he is doing rest assured on that.
If the bid is £4.20 approx
And GLS is worth £4
Are we saying RM is only worth 20p
If I was going to invest my money in a safe haven I doubt I'd choose RM!!
There's a similar article in the Times but that suggests DK has been surprised that Williams is anti the takeover.
Hurtsparrow as you say, 'if the article can be taken at face value'. I'm inclined to believe the essence is true, the Telegraph is very well connected and it wouldn't be wise to provoke their ire at such a delicate stage, rather give them the heads up that there have been discussions.
The fact that the board and Kretensky are having discussions, and that Kretensky has given fairly wide ranging assurances suggest that the door is open. Redwheel, who have around 5% of IDS equity said after the first offer that GLS was worth 350p on its own, and on that basis I think his final bid will be north of £4.2.
He has a war on his doorstep coming ever closer, and gas pipelines are very fragile. I think he would really like to have his money invested in a safer part of the world.
Yes also found that part particularly interesting.
The irony of the board looking to safeguard jobs.One presumes at executive level but they couldn't care less otherwise.
If you take the article at face value they meetings have obviously gone in to some detail.
I'm 15 years and out.Sack the lot and get that SP up ;-)
Appreciated hurtsparrow. This section of the article was particularly interesting:
"The board of Royal Mail has held meetings with shareholders in recent weeks as it prepares to mount a defence against the approach.
But in a sign the company is softening its position, Royal Mail executives are now understood to be discussing the potential undertakings that would be required from Mr Kretinsky if any future bid were to be accepted.
These are understood to include guarantees around jobs, as well as other politically sensitive issues such as the Royal Mail brand."
Https://archive.ph/5jizx
Article with no pay wall.
Yer also said he wasn’t interested in buying IDS he’s just like a politician only richer but still the same BS
Hurtsparrow, not subscribed so only read the headline promise of no job losses and his intent to launch a fresh bid. He's tested the water with his first attempt, bid number 2 will be at a price judged to gain allies. Bid number 3 to clinch it?
Https://www.telegraph.co.uk/business/2024/05/04/royal-mail-bidder-pledges-prevent-job-takes-charge/
We shall have a Labour government next time around anyway, so things will change. Can't say I'm a fan but can they be any worse than the current shower.
Time will tell.
Darbo, what makes you think HM Government is still the number 1 stakeholder in Royal Mail. They don’t have any shares and are far from being the largest customer.
Isleworthespy
Some people have got a flimsy world view
Isleworthspy
I am wons
TMS
I a m a fan of your ardour... let's see (how long have been saying that!)
Darbo - The global market is a highly neurotic, irrational bowl of jelly….inhabited by flappers and doubters. Lol.
Which is why buying at an oversold price and selling at an over bought price works every time.
TMS
I see your point but the(global) market apparently doesn't .
Darbo - ‘it's about SECURITY. It is probably best to stay in domestic control’
Don’t fall into the trap.
Regardless of your political angle or whether you think Royal Mail should or shouldn’t be in domestic control…..the government have let the cat out of the bag and given Kretinsky a fat thumbs up to buy the company.
There is no ‘security’ risk. Only ideological political opinion…..which isn’t going to stop foreign investment in UK companies.
TMS and simx
With all due respect, imo this is way beyond quality of service and 1st and 2nd class and property assets b***s .... it's about SECURITY. It is probably best to stay in domestic control
Isle, 'It wasn't so long ago that Daniel said he had no intention of making a bid for IDS. Now, this makes him a liar for stating that.'
Kretinsky may have not have had the intent to make a bid for IDS when he made that statement. None of us know his intent, and none of us would be so rigid as to hold ourselves in perpetuity to something we said last year if our circumstances had changed significantly. Correct me if i'm wrong but didn't his companies generate £3 billion profit for him this year? I think it's reasonable to assume that what was true for him last year no longer holds, and I would find it difficult to call him a liar. More of a fluid businessman.
Money, Kretensky should be a lot closer to understanding how much the institutional holders are demanding. For the last year market value of IDS has been based on an sp of around 250p. A large part of the perceived value of IDS is based on potential and being at the starting point of a more stable economic period; an updated USO saving £x amount per year, CWU showing signs of working with management, inflation controlled, interest rates due to fall, an economy on the upswing, consumers spending more. Tangible assets are measurable, but future potential of the business is
where the wrangling re perceived value of IDS will be focused, and where the positions of buyer and seller will need to come together to make a deal.
@ Darbo.
I was referring to this: """and he thought that he would be able to bully his way in on the cheap."""
NOT your post.
Regarding any future bid. Daniel has offered a 40%+ premium on the share price, already, from the start point of 220p (ish). If he were to offer another 40% from where we are now, is 390p acceptable? If it's not, to the shareholders as well as the board, why oh why, are people not loading up?
If 220p is undervalued, then 320p, then 390p, what exactly is the value of IDS?
I just don't get the price.
Simx - it is possible that there could be two bids in the pipeline but given the fact that we now only have one more full week before the end of the deadline I can only realistically see one last ‘best and final’ offer.
My opinion is that there is a lot going on behind the scenes involving VESA, the board and other large holders and my guess is that, given the lack of activity, there is still a fair old gap in the valuation of the company.
The position of power is with the board and shareholders and I think that Kretinsky probably thought ploughing in would result in holders desperately selling up…..and to his surprise (but not mine) that hasn’t happened.
I think Kretinsky may have took the other large shareholders by surprise with his 320p offer and it was clear that this offer was never going to be accepted……and may have made them much more determined to dig their heels in.
One week to go….tick tock……
Going to have to go a bit deeper Daniel.