Billionaire Czech bidder for Royal Mail advised by ex-Labour’s Chuka Umunna

The former shadow business secretary Chuka Umunna is lobbying Labour on behalf of a Czech billionaire in a bid to push through his takeover of Royal Mail.

Mr Umunna, who served in the shadow Cabinet under Ed Miliband and is now a senior banker at JP Morgan, is advising Daniel Kretinsky on his swoop for the 500-year-old postal service.

The former politician, who resigned from Labour in 2019, is believed to have played a role in brokering relationships between the party and Mr Kretinsky.

His involvement sparked a furious backlash from the union representing postal workers, which took aim at “corporate sleaze”.

A spokesman for the Communications Workers Unions (CWU) said: “That a failed politician turned investment banker like Chuka Umunna is in a position to influence decisions about Britain’s vital institutions is bad for the country as a whole.

“The question of Britain’s crumbling infrastructure will be a burning topic in this year’s general election, and none have been more mismanaged in recent years than Royal Mail.

“Labour should be steadfast in rejecting such corporate sleaze and support a stable model for Royal Mail that works for communities and the employees that serve them.”

JP Morgan and Labour declined to comment. Mr Umunna was contacted for comment.

Earlier this month it emerged that Royal Mail had rebuffed a £3.1bn takeover bid from Mr Kretinsky, dubbed the “Czech sphinx”, sparking concerns among some politicians that a critical British asset could fall into the hands of a foreign buyer.

The swoop is also facing opposition from the CWU, which is instead calling for a “new ownership and governance model” for Royal Mail.

Mr Kretinsky’s EP Group, which is expected to make a fresh offer ahead of a deadline of May 15 set under City takeover rules, has held meetings with union bosses in a bid to ease workers’ concerns.

One potential option being explored is an equity compensation scheme for employees, though sources cautioned that discussions were at an early stage and no firm plan had been made.

Labour, which expressed support for the compensation proposals, is thought to be open to a takeover of Royal Mail as it pushes for greater investment in the postal service’s creaking network.

The approach risks igniting tensions with the CWU, which has called for Royal Mail to be brought back into ownership. However, the union admitted that “the current political climate makes delivering this very difficult”.

Labour officials held discussions with union bosses on Friday to discuss the potential takeover.

Mr Umunna, who was one of the founding members of the short-lived Change UK party following his resignation from Labour, is now managing director and head of ESG across Europe, the Middle East and Africa at JP Morgan.

He is part of a wider deal team at the US investment bank, led by Dwayne Lysaght, that is advising EP Group.

Mr Kretinsky’s company is also working with bankers at BNP Paribas and Citigroup. Royal Mail has hired Goldman Sachs’ Mark Sorrell, son of advertising tycoon Sir Martin Sorrell, to work on its defence alongside bankers at Barclays and Bank of America.