Royal Mail’s Czech suitor delivers further intrigue
JUST what is Czech billionaire Daniel Kretinsky up to? That’s the question on traders’ lips as the tycoon who owns Sparta Prague football club raised his stake in Royal Mail again – this time to 7.13 per cent, or £125million.
When this newspaper revealed that Kretinsky – who made his fortune in energy before snapping up stakes in well-known companies across Europe – had bought a 5 per cent stake in the postal service, it set tongues wagging.
Would he launch an audacious takeover bid for the historic but recently troubled company? Some analysts think he could, but others argue he is more likely to be pushing for a sale of the company’s overseas arm GLS, especially now that former chief executive Rico Back is out of the picture.
Kretinsky refuses to comment on his intentions. But the prospect of a bid by the Czech Sphinx – socalled because he is notoriously tricky to read – doesn’t appear to have everyone convinced.
The short positions in Royal Mail remain near a record high and some hedge funds have even raised their bets against the share price since Kretinsky’s stake became public. That suggests they don’t think a bid is likely.
IT COULD be quite a dramatic reshuffle for the FTSE 100 next month given the turmoil that has rocked the markets.
The final moves will be decided on Tuesday and cruise operator Carnival looks certain to be ejected. EasyJet is also at risk of the chop.
On the flipside, it is good news for cyber security company Avast, which looks set to join the premier league of stocks for the first time.
And it will be a return to the top flight after more than a year away for Ladbrokes Coral owner GVC, which means boss Kenny Alexander has lost his bet that the company would be back in the FTSE100 within six months.
STOCK market floats have been few and far between recently, but on Tuesday Trident Resources – a mining royalties business soon to be called Trident Royalties – is moving from the main market to AIM and it has managed to raise £16 million in the process.
The company, chaired by former Xstrata manager James Kelly, wants to use the cash to build a portfolio of mining royalties, which involves making up-front payments in return for a cut of all future revenues from a mine.
Mining royalties appeal to investors who want exposure to mining assets, but don’t want the huge risk of investing in companies which are spending vast sums on exploration.