LONDON, May 28 (Reuters) - Royal Mail's parent company

International Distributions Services (IDS) is set to

recommend a firm offer by Czech billionaire Daniel Kretinsky, a

person with knowledge of the situation said.

An announcement is expected on the fate of the bid for one

of the world's oldest postal companies before a May 29 deadline

under UK takeover rules.

Earlier this month Kretinsky's investment vehicle EP Group

improved its bid for the shares he doesn't own in IDS to 370

pence per share, after an earlier bid of 320 pence was rejected

by the London-listed firm. Kretinsky owns 27.6% of the company,

according to LSEG data.

The agreed deal is set to come with some commitments for the

future of the business, according to the person, who spoke on

condition of anonymity because the process is private.

IDS and a representative for EP Group declined to comment.

The BBC earlier reported that the board of the company that owns

Royal Mail was expected to recommend a fresh takeover offer for

the organisation on Wednesday.

(Reporting by Amy-Jo Crowley. Writing by Anousha Sakoui)