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Czech billionaire Daniel Křetínský agrees to buy Royal Mail owner in £5.2bn deal

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Czech billionaire Daniel Křetínský agrees to buy Royal Mail owner in £5.2bn deal

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Czech billionaire Daniel Křetínský has reached an agreement to buy the owner of Royal Mail in a deal valuing the group at £5.2bn, as he pledged to revive the fortunes of the former UK postal monopoly away from the glare of public markets.

Křetínský’s EP Group said on Wednesday it had agreed a takeover price of 370 pence per share for London-listed International Distribution Services, which owns Royal Mail and the international parcel business GLS, setting the path for intense political scrutiny of the proposal during a UK election year.

EP Group and IDS have spent the past few weeks hammering out the details of a deal for the former state-owned postal group, which since privatisation has been beset by strikes and growing competition from the likes of Amazon.

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The move to place the 508-year-old postal service under foreign ownership comes with various commitments, including keeping its UK headquarters, recognising the postal workers’ union and maintaining Royal Mail’s obligation to deliver mail everywhere in the UK at the same cost. But these commitments have been made for just five years, with the Labour party and the union already vowing to protect the future of the group.

Jonathan Reynolds, shadow business secretary, said the Labour party, which is expected to win the general election on July 4, would “take the necessary steps to safeguard [Royal Mail’s] undeniable identity and place in public life”, adding that “Labour in government will ensure [EP Group’s commitments] are adhered to”.

Daniel Křetínský has pledged to revive Royal Mail’s fortunes © David W Cerny/Reuters

Dave Ward, general secretary of the Communication Workers Union, said: “We do welcome some of the commitments that have been made but the reality is postal workers across the UK have lost all faith in the senior management of Royal Mail and the service has been deliberately run down.”

He said the CWU would be “engaging with the Labour party and other stakeholders to call for a new model of ownership for Royal Mail where our members and customers have a direct say in key decisions”, adding that “this situation is a direct result of a failed and ideological privatisation over a decade ago”.

Jeremy Hunt, chancellor, previously said a bid for Royal Mail would be subject to “normal” scrutiny on national security grounds, but added that international investment in British companies was generally welcomed.

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Křetínský, a lawyer-turned-energy tycoon, is already the largest shareholder in IDS with a 27.5 per cent stake. His IDS takeover bid marks his latest UK dealmaking spree, after he acquired stakes in supermarket chain J Sainsbury and English Premier League football club West Ham United.

Křetínský said that “IDS’s market is evolving quickly, and it must accelerate its transformation and investments into modernisation to keep up with the competition”.

EP Group’s offer follows years of losses and failures to hit performance targets at Royal Mail, which have seen IDS’s shares drop from more than 550p in 2018 to just 213p before the company’s first bid was announced in April.

While being required to meet Royal Mail’s historic obligation to deliver everywhere in the UK at the same cost, EP Group would face the challenge of declining demand for letters and growing competition for parcel deliveries.

Previous attempts by IDS to overhaul the business in response to that competition have been strongly opposed by postal workers, who walked out for 18 days in 2022 over plans to bring working practices closer in line with more modern rivals.

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Line chart of Share price, pence showing IDS shares fail to reach offer price

Shares in IDS rose 3 per cent on Wednesday morning to 330 pence, significantly below the offer price, suggesting doubts over whether the deal will pass.

One top IDS shareholder said he was “disappointed” by the offer price, but warned that “if the deal doesn’t go through, you are stuck with a management team that didn’t want the company to remain public and no longer seem to believe there is much value”.

Analysts have previously suggested that a takeover of IDS could lead to a break-up of Royal Mail and the more profitable GLS, a move strongly opposed by the postal workers’ union. EP Group’s recommended offer, which includes restrictions on breaking up GLS from the broader IDS group for five years, comes just days after IDS said GLS had helped the group return to profit in the 12 months to March.

“The IDS board believes that the offer from EP is fair and reasonable given that there are uncertainties ahead and allows investors to realise value at a significant premium,” said IDS chair Keith Williams.

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Supreme Court blocks redrawing of New York congressional map, dealing a win for GOP

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Supreme Court blocks redrawing of New York congressional map, dealing a win for GOP

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The Supreme Court on Monday intervened in New York’s redistricting process, blocking a lower court decision that would likely have flipped a Republican congressional district into a Democratic district.    
  
At issue is the midterm redrawing of New York’s 11th congressional district, including Staten Island and a small part of Brooklyn. The district is currently held by a Republican, but on Jan. 21, a state Supreme Court judge ruled that the current district dilutes the power of Black and Latino voters in violation of the state constitution.  
  
GOP Rep. Nicole Malliotakis, who represents the district, and the Republican co-chair of the state Board of Elections promptly appealed to the U.S. Supreme Court, asking the justices to block the redrawing as an unconstitutional “racial gerrymander.” New York’s congressional election cycle was set to officially begin Feb. 24, the opening day for candidates to seek placement on the ballot.  
  
As in this year’s prior mid-decade redistricting fights — in Texas and California — the Trump administration backed the Republicans.   
 
Voters and the State of New York contended it’s too soon for the Supreme Court to wade into this dispute. New York’s highest state court has not issued a final judgment, so the voters asserted that if the Supreme Court grants relief now “future stay applicants will see little purpose in waiting for state court rulings before coming to this Court” and “be rewarded for such gamesmanship.” The state argues this is an issue for “New York courts, not federal courts” to resolve, and there is sufficient time for the dispute to be resolved on the merits. 
  
The court majority explained the decision to intervene in 101 words, which the three dissenting liberal justices  summarized as “Rules for thee, but not for me.” 
 
The unsigned majority order does not explain the Court’s rationale. It says only how long the stay will last, until the case moves through the New York State appeals courts. If, however, the losing party petitions and the court agrees to hear the challenge, the stay extends until the final opinion is announced. 
 
Dissenting from the decision were Justices Sonia Sotomayor, Elena Kagan, and Ketanji Brown Jackson. Writing for the three, Sotomayor  said that  if nonfinal decisions of a state trial court can be brought to highest court, “then every decision from any court is now fair game.” More immediately, she noted, “By granting these applications, the Court thrusts itself into the middle of every election-law dispute around the country, even as many States redraw their congressional maps ahead of the 2026 election.” 

Monday’s Supreme Court action deviates from the court’s hands-off pattern in these mid-term redistricting fights this year. In two previous cases — from Texas and California — the court refused to intervene, allowing newly drawn maps to stay in effect.  
  
Requests for Supreme Court intervention on redistricting issues has been a recurring theme this term, a trend that is likely to grow.  Earlier last month  the high court allowed California to use a voter-approved, Democratic-friendly map.  California’s redistricting came in response to a GOP-friendly redistricting plan in Texas that the Supreme Court also permitted to move forward. These redistricting efforts are expected to offset one another.     
   
But the high court itself has yet to rule on a challenge to Louisiana’s voting map, which was drawn by the state legislature after the decennial census in order to create a second majority-Black district.  Since the drawing of that second majority-black district, the state has backed away from that map, hoping to return to a plan that provides for only one majority-minority district.    
     
The Supreme Court’s consideration of the Louisiana case has stretched across two terms. The justices failed to resolve the case last term and chose to order a second round of arguments this term adding a new question: Does the state’s intentional creation of a second majority-minority district violate the constitution’s Fourteenth and Fifteenth Amendments’ guarantee of the right to vote and the authority of Congress to enforce that mandate?    
Following the addition of the new question, the state of Louisiana flipped positions to oppose the map it had just drawn and defended in court. Whether the Supreme Court follows suit remains to be seen. But the tone of the October argument suggested that the court’s conservative supermajority is likely to continue undercutting the 1965 Voting Rights Act.   

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Map: Earthquake Shakes Central California

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Map: Earthquake Shakes Central California

Note: Map shows the area with a shake intensity of 3 or greater, which U.S.G.S. defines as “weak,” though the earthquake may be felt outside the areas shown.  All times on the map are Pacific time. The New York Times

A minor earthquake with a preliminary magnitude of 3.5 struck in Central California on Monday, according to the United States Geological Survey.

The temblor happened at 7:17 a.m. Pacific time about 6 miles northwest of Pinnacles, Calif., data from the agency shows.

As seismologists review available data, they may revise the earthquake’s reported magnitude. Additional information collected about the earthquake may also prompt U.S.G.S. scientists to update the shake-severity map.

Source: United States Geological Survey | Notes: Shaking categories are based on the Modified Mercalli Intensity scale. When aftershock data is available, the corresponding maps and charts include earthquakes within 100 miles and seven days of the initial quake. All times above are Pacific time. Shake data is as of Monday, March 2 at 10:20 a.m. Eastern. Aftershocks data is as of Monday, March 2 at 11:18 a.m. Eastern.

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US says Kuwait accidentally shot down 3 American jets

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US says Kuwait accidentally shot down 3 American jets

The U.S. and Israel have been conducting strikes against targets in Iran since Saturday morning, with the aim of toppling Tehran’s clerical regime. Iran has fired back, with retaliatory assaults featuring missiles and drones targeting several Gulf countries and American bases in the Middle East.

“All six aircrew ejected safely, have been safely recovered, and are in stable condition. Kuwait has acknowledged this incident, and we are grateful for the efforts of the Kuwaiti defense forces and their support in this ongoing operation,” Central Command said.

“The cause of the incident is under investigation. Additional information will be released as it becomes available,” it added.

In a separate statement later Monday, Central Command said that American forces had been killed during combat since the strikes began.

“As of 7:30 am ET, March 2, four U.S. service members have been killed in action. The fourth service member, who was seriously wounded during Iran’s initial attacks, eventually succumbed to their injuries,” it said.

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Major combat operations continue and our response effort is ongoing. The identities of the fallen are being withheld until 24 hours after next of kin notification,” Central Command added.

This story has been updated.

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