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Saturday, February 25, 2012

UPS Looking to Buy European Rival - Source Trucking Today

UPS Looking to Buy European Rival

UPS made an unsolicited bid to buy Dutch package shipper TNT Express NV. TNT rejected the bid, worth about $6.4 billion, but the companies reportedly are still talking about a possible deal.

UPS said Friday that "discussions between the parties concerning this proposal are ongoing, although there is currently no certainty that any agreement will be reached." Such a deal would be the largest in UPS history.

The Wall Street Journal reports that there has been regular speculation about interest in TNT by UPS and FedEx, but this is the first time either has confirmed talks. UPS and FedEx, it notes, look at the company as a way to round out investments in Asia with a larger European presence.

As Reuters notes, TNT has suffered as the global economic slowdown led customers to look for cheaper shipping alternatives to air transport.


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