Royal Mail bidder Křetínský posts formal offer to shareholders; Doordash ‘held takeover talks’ with Deliveroo – business live | Business

Daniel Křetínský’s bid to acquire Royal Mail will be beneficial for the city.

Sky News reports that advisers working on the deal are in line for a handsome fee worth more than £130m.

Banks that will share in the pot include Barclays, Goldman Sax, JP Morgan, GNP Pariba and Citigroupwhich are all named such as providing advice on both Krshetinsky or for International distribution services.

Czech billionaire Daniel Křetínský’s bid to take control of Royal Mail takes a step forward today.

of Krshetinski investment group publishes the official offer for International Distribution Services (IDS)the parent company of Royal Mail, online this morningand mail it.

This means investors, including some 100,000+ former and current Royal Mail employees, must decide whether to accept of Krshetinski Takeover bid worth £3.57bn.

Employees were given shares totaling 10% of the company when Royal Mail floated on the stock market a decade ago. Some will have since been sold, but staff still hold around 5.5% of the equity (Krshetinsky is already the largest shareholder with 27.5%).

Krshetinsky offers to pay 360p per share for Royal Mail; a premium to the 220p levels they traded at in April before he made his first approach.

Royal Mail shares closed at 315p last night, a sign the City is not sure about that Krshetinsky will succeed in his proposal.

It does have the support of the IDS board, which has agreed to various terms and conditions related to of Krshetinski last offer a month ago.

But the deal will also be reviewed under the UK’s National Security and Investments Act.

Earlier this month, Business Secretary Kemi Badenoch was forced to question Kretynski about his business connections after The Guardian raised questions about a series of controversial global property deals linked to longtime business partners of the Czech billionaire.

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Deliveroo has become the latest British company to catch the eye of an overseas suitor.

According to Reuters, an American food delivery group Dashboard noted interest in taking over the Deliveroo last month.

Based in San Francisco Dashboard approached Deliveroobut negotiations appear to have broken down over a disagreement over valuation.

Negotiations are not underway, a person familiar with the matter said.

After booming during the pandemic, food delivery apps now face a tougher macroeconomic environment as the shrinking cost of living hits customers.

The Financial Times calculated a month ago that online food delivery groups in Europe and the US have racked up more than $20bn (£15.7bn) in combined operating losses since emerging on stock markets in recent years.

This includes operating losses of $777m for Deliveroo from 2021 when it lists in London.

Investors were not particularly impressed. Deliveroo was moving at 390p per share in April 2021, but it was called “Flopperoo” after falling 26% in the first day.

By October 2022 they had sunk to 73p, but last night they were back to around 127p.

This values ​​Deliveroo at just over £2bn, down significantly from its £7.6bn valuation when it was offered.

In March, Deliveroo predicts it will grow its sales (gross transaction value) by 5-9% and achieve positive free cash flow this year; DoorDashwhich is worth $45 billion, may have seen a profitable opportunity in the UK…

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