Royal Mail Owner Welcomes £3.5 Billion Bid From Kretinsky (2)

The owner of Britain’s Royal Mail is inclined to accept a £3.5 billion ($4.4 billion) non-binding bid from Czech billionaire Daniel Kretinsky as it struggles to modernize the beleaguered postal service.

Parent company International Distributions Services Plc said the board has indicated to Kretinsky’s EP Group that it would probably recommend an offer at the 370 pence per share value proposed. That’s after strongly rejecting its previous offer and promising higher profits from the planned liberalization of postal regulations.

IDS shares jumped as much as 23% to 335 pence, before paring gains to close under 315 pence — well below ...