FedEx in talks to buy Dutch rival TNT
07-24-2008, 10:53 AM
#56
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Posts: 337
July 24, 2008, 10:00 am
Breaking News: FedEx-TNT Talks Returned to Sender
Posted by Dana Cimilluca
Investors betting FedEx will soon mail a takeover offer to Dutch letter- and package-delivery concern TNT may be disappointed.
nullRumors of a possible transatlantic purchase of TNT, which now has a market cap of about nine billion euros (or roughly $14 billion), have swirled ever since the Financial Times reported July 11 that FedEx was in “preliminary talks” to acquire TNT. That has helped boost shares of TNT nearly 40% since then.
That rise could prove short-lived. People familiar with the matter tell Deal Journal that even though there were low-level talks about such a deal recently–as there have been many times in the past decade–the discussions didn’t lead anywhere.
Buying TNT, with its strong position in the European market, would turbocharge FedEx’s international expansion at a time of flagging U.S. demand and possibly enable it to trim costs at a time of soaring fuel prices.
But those same headwinds the Memphis, Tenn., company faces would limit its ability to pay the price necessary to get a deal done and likely contributed to the talks being aborted. FedEx reported its first quarterly loss in 11 years in June. Even after a recent rebound, its shares have tumbled 27% in the past year–hardly strengthening its M&A hand.
Another hurdle to a deal is UPS, FedEx’s larger rival in the U.S. UPS has also considered buying TNT is the past, with a private-equity partner, according to another person familiar with the matter. It could be expected to compete with FedEx should FedEx ever get serious about a deal with TNT.
Perhaps the biggest deterrent, however, is TNT’s stock. The company might have looked attractive to FedEx with its stock down more than 40% in the past year. But that was before talk of a possible deal surfaced. The ensuing surge alone would likely be enough to send FedEx packing.
–With Douglas A. Blackmon and Alex Roth
Breaking News: FedEx-TNT Talks Returned to Sender
Posted by Dana Cimilluca
Investors betting FedEx will soon mail a takeover offer to Dutch letter- and package-delivery concern TNT may be disappointed.
nullRumors of a possible transatlantic purchase of TNT, which now has a market cap of about nine billion euros (or roughly $14 billion), have swirled ever since the Financial Times reported July 11 that FedEx was in “preliminary talks” to acquire TNT. That has helped boost shares of TNT nearly 40% since then.
That rise could prove short-lived. People familiar with the matter tell Deal Journal that even though there were low-level talks about such a deal recently–as there have been many times in the past decade–the discussions didn’t lead anywhere.
Buying TNT, with its strong position in the European market, would turbocharge FedEx’s international expansion at a time of flagging U.S. demand and possibly enable it to trim costs at a time of soaring fuel prices.
But those same headwinds the Memphis, Tenn., company faces would limit its ability to pay the price necessary to get a deal done and likely contributed to the talks being aborted. FedEx reported its first quarterly loss in 11 years in June. Even after a recent rebound, its shares have tumbled 27% in the past year–hardly strengthening its M&A hand.
Another hurdle to a deal is UPS, FedEx’s larger rival in the U.S. UPS has also considered buying TNT is the past, with a private-equity partner, according to another person familiar with the matter. It could be expected to compete with FedEx should FedEx ever get serious about a deal with TNT.
Perhaps the biggest deterrent, however, is TNT’s stock. The company might have looked attractive to FedEx with its stock down more than 40% in the past year. But that was before talk of a possible deal surfaced. The ensuing surge alone would likely be enough to send FedEx packing.
–With Douglas A. Blackmon and Alex Roth
07-26-2008, 05:41 PM
#57
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Posts: 3,193
TNT Shares fall 18% as FedEx takeover talks fail
TNT shares fall 18% as FedEx takeover talks fail
Shares in TNT fell as much as 18 percent after the Wall Street Journal reported that takeover talks with FedEx had ended, Reuters reports.
Following a Financial Times article reporting that FedEx was in preliminary talks to buy TNT, the company's shares went up as much as 47 percent.
UPS had also considered buying TNT in the past with a private-equity partner. Those close to the deal believe if FedEx does get serious about a takeover, they could expect to compete with UPS.
http://www.cargonewsasia.com/secured...&article=16588
Shares in TNT fell as much as 18 percent after the Wall Street Journal reported that takeover talks with FedEx had ended, Reuters reports.
Following a Financial Times article reporting that FedEx was in preliminary talks to buy TNT, the company's shares went up as much as 47 percent.
UPS had also considered buying TNT in the past with a private-equity partner. Those close to the deal believe if FedEx does get serious about a takeover, they could expect to compete with UPS.
http://www.cargonewsasia.com/secured...&article=16588
07-26-2008, 07:03 PM
#58
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Joined APC: Mar 2006
Posts: 3,333
Wouldn’t surprise me if Purple gives it another try as soon as the TNT shares reach the lower lever before the rumor of an imminent buyout came out… Fedex still wants TNT but not at the current, inflated price – I think that’s smart…
08-11-2008, 04:25 AM
#59
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Posts: 425
You are right CHUMPCHANGE, the Pilot group is way too easy and not in unison with each other ................. The Company knows this and uses it against us every day. I don't agree with you that we have a "hard won contract" there was nothing hard about keeping the work rules basically unchanged yet "sprinkling the contract with money" as we were told in the T.A. Dog and Pony road shows ................ Until this group gets rid of its "me first" mentality, then nothing much is going to change.
08-11-2008, 04:32 AM
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Posts: 531
Originally Posted by tennesseeflyboy
You are right CHUMPCHANGE, the Pilot group is way too easy and not in unison with each other ................. The Company knows this and uses it against us every day. I don't agree with you that we have a "hard won contract" there was nothing hard about keeping the work rules basically unchanged yet "sprinkling the contract with money" as we were told in the T.A. Dog and Pony road shows ................ Until this group gets rid of its "me first" mentality, then nothing much is going to change.
Who are you replying to? I didn't see any post in this thread by CHUMPCHANGE.
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