UPS still in talks with TNT Express on $6.43-bn takeover
17 Mar 2012
United Parcel Service (UPS) yesterday said that it was still in talks with its smaller rival TNT Express on a potential $6.43-billion takeover target.
Atlanta- based UPS said in a statement that it was in ''constructive discussions with TNT Express regarding a potential transaction to acquire the entire issued share capital.''
The statement follows the rejection of UPS takeover proposal by TNT Express on 17 February but the Amsterdam-based company had said that it was still in talks with UPS.
The potential acquisition would be UPS's largest in its 105-year history after it purchased Overnite Corp in 2005 for $1.2 billion.
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 since the European regulator would not approve the deal as 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.