TNT Express rejects UPS's $6.43-bn takeover offer

TNT Express NV, Europe's second-largest package-delivery company yesterday rejected an unsolicited $6.43-billion takeover offer from its larger rival United Parcel Service (UPS).

However, both companies said that they were still in talks, and TNT added that it would not comment further but would give an update on its overall strategy on 21 February, when it reports fourth-quarter results.

UPS said that following discussions with TNT, on 11 February it made a revised, increased and comprehensive proposal to acquire TNT for €9 per share in cash, which was €2.66 above TNT's €6.34 closing price on 17 February - a factor that is likely to drive up TNT's share price when markets open next week. 

Amsterdam-based TNT has been seen as a takeover target since the past two years either by UPS or smaller rival FedEx Corp, while Germany's Deutsche Post World Net, parent of DHL, is not considered as a potential suitor as the European regulator would not approve the deal since the merger would create a monopoly in Europe.

Speculation increased that TNT would be a prime acquisition target after it spun-off its express unit and mail businesses PostNL last year, with PostNL retaining a 29.9-per cent stake in TNT.

Since the spin-off, TNT's market value has sunk amid profit warnings. It posted a net loss of €97 million for the first nine months of 2011 compared with a profit of €62 million a year earlier.