UPS Dismisses TNT Takeover Talk
A senior UPS executive on Monday dismissed talk of a $15 billion takeover bid for Dutch rival TNT as a "rumor," and said an acquisition would devalue its own shares.
Reuters had reported earlier that a source familiar with the talks said UPS was in the early stage of discussions with Europe's second-largest mail and logistics group.
"That rumor again?" Dan Brutto, president of the company's international business, told Reuters in an interview. "I look at that (TNT share price) and said, 'someone says we're going to buy something that devalues our shares too at the same time,'" he said. Brutto added, however, that acquisitions were not something he oversaw directly.
"But we always look at different things and try to fit (them) into the puzzle," Brutto told Reuters. He said UPS hoped to make some Chinese acquisitions.
"U.S. consumers are not buying, but I think the great opportunity for us internationally is business that never touches U.S. shores," said Brutto, who was in Beijing to attend the 2008 Olympics where UPS is a sponsor.
The earlier Reuters report was based on a tip from a source who could provide no further detail. TNT declined to comment. London's Sunday Telegraph reported that UPS was planning a 10 billion-euro ($15.2 billion) bid.
FedEx, another suitor, ended preliminary talks to buy TNT last month, according to traders.
The Journal of Commerce

Bigger costs probably are the loss of a day on each end of either an airline ticket or company jumpseat to position the crewmember. Losing two days out of 14/15 day line bid . Is what a 15% cost that could be eliminated, plus any travel expenses savings on flights that could be turned instead of laid over. They would also be an initial saving of new hire FO's, possibly from the respective countries making the host countries happy.

And call it? ... drum roll... :eek:

ExUPS;).............

Yes, airline tickets and hotel costs are significant, however, you're overlooking the productivity of the pilot. For example, deadheading a pilot to Asia, requires 2-3 days, then rest before the trip. The same is true for the return. Instead of the pilot working 12-15 days in a month, the pilot sometimes is only available for 4-7 days. I remember in 1992 or 1993 our DC-10 bidback during one 5 week bid month had a line which paid about 105 credit hours. It was a 15 day trip. It entailed a 4-5 day deadhead to Kuala Lumpur. The crew then flew 3 days of out and backs to Penang. The total actual block for the month was about 5 hours. A couple years later we opened Subic.

I've been in Subic for several years. I wanted to go to Hong Kong. Unfortunately, I could not justify doing so with our LOA. For me the biggest problem was the idea of "tax equalization." It's a convoluted and complex concept. In our case, it was anything but "equal." It was going to cost me tens of thousands of dollars a year. If and when the time comes for you to open foreign domiciles, hopefully the folks representing you will do their homework diligently.

Just curious. Is that tens of thousands over what you have been paying at Subic, or tens of thousands over what you would pay as a U.S. citizen living in the USA?

I haven't read every post, so forgive me if this repeats an earlier post. Even if, and its a huge if, OOPS buys TNT, there is no way in God's green earth that the IPA will do that flying. UPS has an uncanny knack of being able to shuffle cargo around to prevent our flying it. Witness the latest shuffling of city pairs to get around the latest open skies initiative. Also to be considered is the loss of jobs for the pilots. UPS has a track record of not taking the pilots when they buy a company. The EU will look on that rep with a very hairy eyeball. UPS just invested a HUGE amount of euros on the CGN hub. They don't want to **** off the EU.

TH1

I don't know, how's Federal T Xpress (FTX) and United T Service (UTS)? :D