Czech ups stake amid turmoil at Royal Mail

CZECH billionaire Daniel Kretinsky has raised his stake in Royal Mail to above £100million as the postal service battles its biggest crisis since it was privatised.

The owner of Sparta Prague football club, who made his fortune in energy, now owns more than 6 per cent of the postal service.

Kretinsky’s shareholding – via the Vesa Equity Investment vehicle he owns with his business partner Patrik Tkac – is worth £106million.

Royal Mail has been plunged into crisis after it ousted chief executive Rico Back on Friday without a permanent replacement. The company has suffered a collapse in letter volumes and been involved in a bitter industrial dispute.

A source said Kretinsky was not involved in Back’s departure from the company, which was privatised in 2013.

However, speculation is swirling about the intentions of the investor known as the Czech Sphinx after The Mail on Sunday revealed earlier this month he had quietly become the company’s fourth largest shareholder.

Deutsche Bank analysts advised clients to stop selling Royal Mail shares in case Kretinsky launched a takeover bid that would cause them to rise.

Kretinsky, who owns Czech energy giant EPH which also owns power plants in the UK, last week took a 5 per cent stake in American department store chain Macy’s.

Last year, he launched a failed bid for German retailer Metro after building a stake but is still the largest shareholder.

A spokesman for Kretinsky declined to comment on his stake.