Dav8tor
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February 17, 2012, 1:28 pm Mergers & Acquisitions
TNT Express Rejects Bid by U.P.S.
By MICHAEL J. DE LA MERCED TNT Express said on Friday that it has rejected a takeover bid from the United Parcel Service valuing the the Dutch shipping company at about 4.89 billion euros, or $6.4 billion. But it added that talks were continuing.
TNT said in a brief statement that the U..PS. offer was worth 9 euros a share, a nearly 46 percent premium to Thursday’s closing price.
TNT’s board rejected the proposal, but remains in negotiations with U.P.S.
U.P.S. confirmed the talks in a separate statement, but cautioned that the talks may still fall apart.
If the two sides reach a deal, it would be the largest acquisition in U.P.S. history. The shipping giant’s biggest purchase to date was its $1.2 billion takeover of the Overnite Corporation in 2005, according to data from Capital IQ.
U.P.S. has ample resources to make a bid. The company reporting nearly $5.5 billion in cash and short-term investments as of Dec. 31.
It would also provide some solace for TNT shareholders. Since its spin off from the mail carrier PostNL last May, the company has struggled with what it says is reduced demand for air shipping amid a global economic slowdown.
TNT and its now-former parent had held talks about a potential sale to U.P.S. more than three years ago, though those discussions fell apart.
The activist hedge fund Jana Partners began a proxy fight in December, seeking at least two seats on the company’s board in an effort to both force operational improvements and to prod TNT into a sale. TNT has rejected Jana’s candidates.
Shares of TNT rose 2.6 percent on Friday, closing at 6.34 euros ($8.34). Shares of U.P.S. were flat, closing at $76.76.
TNT Express Rejects Bid by U.P.S.
By MICHAEL J. DE LA MERCED TNT Express said on Friday that it has rejected a takeover bid from the United Parcel Service valuing the the Dutch shipping company at about 4.89 billion euros, or $6.4 billion. But it added that talks were continuing.
TNT said in a brief statement that the U..PS. offer was worth 9 euros a share, a nearly 46 percent premium to Thursday’s closing price.
TNT’s board rejected the proposal, but remains in negotiations with U.P.S.
U.P.S. confirmed the talks in a separate statement, but cautioned that the talks may still fall apart.
If the two sides reach a deal, it would be the largest acquisition in U.P.S. history. The shipping giant’s biggest purchase to date was its $1.2 billion takeover of the Overnite Corporation in 2005, according to data from Capital IQ.
U.P.S. has ample resources to make a bid. The company reporting nearly $5.5 billion in cash and short-term investments as of Dec. 31.
It would also provide some solace for TNT shareholders. Since its spin off from the mail carrier PostNL last May, the company has struggled with what it says is reduced demand for air shipping amid a global economic slowdown.
TNT and its now-former parent had held talks about a potential sale to U.P.S. more than three years ago, though those discussions fell apart.
The activist hedge fund Jana Partners began a proxy fight in December, seeking at least two seats on the company’s board in an effort to both force operational improvements and to prod TNT into a sale. TNT has rejected Jana’s candidates.
Shares of TNT rose 2.6 percent on Friday, closing at 6.34 euros ($8.34). Shares of U.P.S. were flat, closing at $76.76.
