Royal Mail owner International Distributions Services PLC (LSE:IDS) (IDS) has again urged that its requirement to deliver letters six days a week be dropped.
Third-largest investor Redwheel had called for such changes over the weekend, following an “opportunistic” takeover attempt by West Ham co-owner Daniel Křetínský.
Royal Mail’s universal service obligation, legally requiring the letter service, had left the company undervalued and “vulnerable to corporate predators,” Redwheel said.
“The lack of universal service reform by government and Ofcom over the past four years has held back Royal Mail's transformation,” IDS chair Keith Williams said on Monday.
“Urgent action is needed. Reform is in the regulator's hands and we urge Ofcom to accelerate their review.”
IDS submitted proposals to Ofcom on Monday, which it said could save as much as £300 million a year by fewer deliveries.
These would include second-class and standard business letters, such as bills, being cut to every other weekday.
Though Křetínský’s £3.1 billion bid had been rejected, his firm EP Group signalled further offers would be made, with a deadline of May 15 being set under UK takeover rules.