Monday, March 19, 2012

UPS close to buying rival TNT Express: report

NEW YORK: United Parcel Service is close to concluding a 5.2-billion-euro ($6.8 billion) deal to acquire Dutch rival TNT Express NV and thus create a dominant package-shipping company in Europe, The Wall Street Journal reported.

Citing informed sources, the newspaper said UPS planned to pay 9.50 euros a share for TNT Express, an increase from its prior offer of nine euros per share.

UPS originally offered to pay 8.25 euros a share
after it first approached the company late last year, the report said.

The two sides have informally agreed on a deal and have no substantial outstanding points to negotiate, the paper said. They were expected to reach a formal agreement Sunday night and announce it Monday.

Last month TNT Express said it had rejected a 4.9 billion euro ($6.4 billion) unsolicited offer by the US-based parcel and logistics giant, but remained in discussions.

The parties have been discussing so-called social issues, which tend to involve personnel and leadership, according to the Wall Street Journal report. One particular sticking point involved whether TNT's Dutch headquarters would serve as the base for the combined business's European operation.

TNT Express operates in more than 200 countries and employs 83,000 people.

- AFP

View the original article here

Source From Channel News Asia

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