Talks Between UPS (UPS) and TNT Express NV May Be Stalled on the Runway
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Overall Analyst Rating:
NEUTRAL (
Up)Dividend Yield: 4.6%
Revenue Growth %: -4.6%
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There has been talk for several weeks regarding the takeover of TNT Express NV.
Back on Feb 15, 2012, UPS (NYSE: UPS) acquired Kiala, a firm based in Brussels that provides convenient delivery options to busy consumers purchasing goods over the Internet. Then, two days later, Bloomberg reported that TNT Express had rejected a bid from UPS (at EUR9/share). After the story broke, UPS affirmed that it was in talks with TNT, but didn't confirm or deny any deal.
A week later, Reuters reported that FedEx (NYSE: FDX) hadn't signaled an intent to step in with a bid of its own. Although, an analyst at Jefferies felt a deal between TNT and FDX would end up being more accretive to FDX over UPS.
The latest and greatest comes from today's article from WSJ, citing people close to the situation saying that talks (between TNT & UPS) are stalling with erosion on a number of issues. Some points cited include headquartering the merged company (in U.S. or Eurpoe?) and TNT's recent performance, which has faltered. Job cuts and union issues were also highlighted.
Ultimately, UPS is looking to do a deal to be back on top of the global ranking by shipping, above FedEx and DHL.
Reports are FedEx is still sitting on the sidelines, but closely monitoring the situation.
Shares of TNT have dropped from EUR10.24, once talks were disclosed, to a recent quote of EUR9.31.
Back on Feb 15, 2012, UPS (NYSE: UPS) acquired Kiala, a firm based in Brussels that provides convenient delivery options to busy consumers purchasing goods over the Internet. Then, two days later, Bloomberg reported that TNT Express had rejected a bid from UPS (at EUR9/share). After the story broke, UPS affirmed that it was in talks with TNT, but didn't confirm or deny any deal.
A week later, Reuters reported that FedEx (NYSE: FDX) hadn't signaled an intent to step in with a bid of its own. Although, an analyst at Jefferies felt a deal between TNT and FDX would end up being more accretive to FDX over UPS.
The latest and greatest comes from today's article from WSJ, citing people close to the situation saying that talks (between TNT & UPS) are stalling with erosion on a number of issues. Some points cited include headquartering the merged company (in U.S. or Eurpoe?) and TNT's recent performance, which has faltered. Job cuts and union issues were also highlighted.
Ultimately, UPS is looking to do a deal to be back on top of the global ranking by shipping, above FedEx and DHL.
Reports are FedEx is still sitting on the sidelines, but closely monitoring the situation.
Shares of TNT have dropped from EUR10.24, once talks were disclosed, to a recent quote of EUR9.31.
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