Yahoo Finance Badenoch urged to scrutinise business links of Royal Mail bidder Křetínský
The business secretary, Kemi Badenoch, is being pressed to question the Royal Mail bidder Daniel Křetínský on his business links, after the Guardian raised questions about a series of controversial global property deals connected to the Czech billionaire’s longtime business partners.
Badenoch is scheduled to meet the tycoon next week to discuss his £3.57bn bid for the 500-year-old institution, which will be subjected to a review under the National Security and Investment Act.
The government has not said it has any fundamental objection to the takeover, which is being led by Křetínský – a billionaire so enigmatic that he has been called the Czech Sphinx.
The takeover promises to be a huge headache for the next government. The board of Royal Mail’s parent company, International Distribution Services (IDS), last month backed Křetínský’s takeover, which will be put to shareholders in September.
Dave Ward, the general secretary of the Communication Workers Union, said: “The government must give this takeover the highest level of scrutiny possible. The failed privatisation of Royal Mail and the deliberate and gross mismanagement of the company by its own board have created the circumstances for this takeover bid. It simply cannot be right that the only examination of this bid comes from that board and from individuals who would profit financially in any takeover.”
The Labour party did not respond to invitations for it to comment.
Ben Cowdock, the senior investigations lead at the campaign group Transparency International, said: “When ownership of critical infrastructure like Royal Mail changes hands, it is vital that the buyers are subject to rigorous due diligence to assess their suitability. Government should not only review buyers’ source of wealth but also whether they are ‘fit and proper’ to operate the business.
“Background checks shouldn’t be just a light-touch review; they must take into account the business history of the buyers and their associates, with high levels of scrutiny placed on accusations against them. Failure to investigate prospective owners of vital British institutions raises the risk they’ll fall into the wrong hands.”
On Friday the Guardian raised questions about the involvement in the bid of Křetínský’s longtime business partner Patrik Tkáč and the investment group he founded, J&T.
The company has been named as being connected to a number of controversial property deals which its spokesperson said “involve accusations of wrongdoing of clients with whom we had banking relationships not wrongdoing carried out by our group”.
Tkac and J&T own 44% of many of Křetínský’s best-known investments, including the vehicle that currently holds their minority stake in Royal Mail. The Slovakian tycoon and his company will also hold a significant position in IDS, should the takeover succeed.
A spokesperson for the Department for Business and Trade said: “We wouldn’t be looking to provide commentary on what the secretary of state will raise in her meeting [with Křetínský] next week.”
A shareholder vote is scheduled for IDS’s annual general meeting on 25 September.
