TNT reject EUR 5 billion take over bid
February 21, 2012
TNT Express has rejected an unsolicited €9 per share takeover bid from UPS. The €4.9billion offer, announced on Friday, represented a 45% premium over the target’s share price.
In a press statement at the close of business on Friday, TNT’s supervisory and executive boards said they had “carefully considered the proposal and explored its rationale, merits and risks for shareholders and all other stakeholders.”
The boards rejected the proposal but say they are continuing discussions with UPS. The decision may be a tactical attempt to induce a bidding war between UPS and its competitor Fedex, both of whom lack scale in Europe.
John Manners-Bell, CEO of transport analysts Ti, says UPS is likely to make an improved offer. “TNT’s sale has been on the cards for some time even though it previously appeared that UPS and FedEx had rejected the idea.
“We expect that there will an improved offer as well as potential interest from other parties. This is just the start of what will be a long and protracted bargaining process.”
TNT Express is one of two companies which resulted from the demerger of TNT in 2011. The other, more profitable company, PostNL, retains a 29% stake in TNT Express but is understood to be keen to shed its holding in the struggling parcel company.
TNT Express, which generated a €180 million operating profit on €7 billion of sales on 2010, reports its 2011 annual results tomorrow.
Courtesy of IFW
