UPS makes informal $15 billion bid for TNT
UPS makes informal $15 billion bid for TNT
By Ruth Mantell, MarketWatch
Last update: 1:23 p.m. EDT Aug. 10, 2008
WASHINGTON (MarketWatch) -- UPS Inc. has informally offered 10 billion euros ($15 billion) for Dutch delivery firm TNT NV, according to a report in The Sunday Telegraph.
There have been early-stage talks in recent days, despite some reluctance from TNT, the report said.
UPS, based in Atlanta, is the world's largest package delivery company, while TNT, which serves more than 200 countries, has a strong European presence.
A deal could lead to cost saving, and further UPS's European market penetration, according to the report, which said the deal would give UPS a full air and road delivery network in Europe.
The UPS plan could include selling TNT's its postal division, it said.
In July, UPS reported a second-quarter drop of 18.3% in per-share earnings. The company cited higher fuel costs and a stagnant U.S. economy leading to declines in U.S. domestic and international package segments. Also last month, TNT reported its second-quarter results, which came in at a worse-than-expected 16% fall in net profit.
UPS has picked Morgan Stanley as its adviser, while Goldman Sachs is advising TNT, the report said.