The offer document for proposed £3.6bn takeover of Royal Mail parent company couldn’t be more vague

Surprise, surprise: the proposed £3.6bn takeover of Royal Mail’s parent company, International Distribution Services (IDS), by a Daniel Křetínský-led bidding consortium will generate a fee bonanza for investment bankers, lawyers, debt-arrangers and assorted hangers-on. The grand total is £146m before VAT, with £89.1m falling on the acquirer and £56.9m on IDS, according to the formal offer document.

It’s a hell of a sum, and the most infuriating element is the £36m that IDS has allocated for “financial and corporate broking advice”. Why? Because that’s the portion that is supposed to reflect the depth, quality and seriousness of the IDS board’s consideration of the fairness of 370p-a-share terms. For such an advisory bill, shareholders might expect maximum financial detail on why the directors rolled over. Instead, in his formal letter to shareholders in the offer document, IDS chair Keith Williams merely served up a cut-and-paste version of his previous sketchy explanation for surrender.