Royal Mail rallies as Czech billionaire Kretinsky builds stake

Royal Mail shares rallied on Monday on news that Czech billionaire Daniel Kretinsky has bought a 5.35% stake in the company.

Kretinsky - who owns Sparta Prague football club and Czech energy utility EPH - purchased the stake for £85m through the Vesa Equity Investment vehicle he controls, according to a regulatory filing late on Friday.

CMC Markets analyst David Madden said "the move has sparked speculation this could be the beginning of a full-on takeover attempt".

Kretinsky also owns a 49% interest in the holding company of French newspaper Le Monde.

At 1150 BST, Royal Mail shares were up 6.3% at 169.80p.