The United Parcel Service Inc.
denied the latest rumors that it is pursuing a $15 billion takeover bid for Europe's TNT NV because it would "devalue company shares." Any deal with UPS might face antitrust scrutiny, but would it really devalue company shares?
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Although TNT has been ailing due to transportation costs, the Dutch company has been seen as an attractive target by analysts such as ING Groep NV's Axel Funhoff. TNT's express delivery unit's resiliency in the economic downturn, its partial monopoly of the mail operation in the Netherlands, and its extensive and inexpensive road network are all advantages that FedEx Corp. and UPS might benefit from, he wrote.
The Sunday Reuters report that UPS was in the early stage of discussions with TNT is just the latest in a month-long series of rumors concerning an acquisition of TNT. Potential acquirers also include FedEx and various private equity firms. However, FedEx apparently ended preliminary talks to buy TNT last month, according to a Reuters report. - Maria Woehr
See earlier story from Corporate Dealmaker
See story from Reuters
See July 29 story from Reuters
