IDS future16 May 2024 10:50
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.