Royal Mail parent IDS trades up on takeover bid

Royal Mail's parent company International Distribution Services (IDS) soared 20% at one stage on the news that a new bid was proposed by Daniel Křetínský's EP Group​​​​.

Trading at 317.53p the London-listed share was up around 46p or 17%.

An offer of 360p per share represents a substantial premium over previous valuations, and, evidently, it is being taken seriously by the stock market.

Daniel Křetínský's offer would include a final dividend and a special dividend, to sweeten the pay-out to shareholders.

The board's inclination to recommend this offer underscores the strategic value and growth potential seen in IDS​​.

What it means for the Royal Mail and its universal service obligations to the British public remains to be seen, and, similarly it is also unclear how much of a political football it will become given that the UK is heading toward a general election.