UPS buyout of TNT possible
05-24-2006, 07:58 AM
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UPS buyout of TNT possible
STOCKS NEWS EUROPE-UPS could pay up to 54 euros for TNT-C.Suisse
Wed May 24, 2006 7:47 AM ET
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U.S. package delivery company United Parcel Service <UPS.N> could afford to pay up to 54 euros per share for Dutch mail firm TNT <TNT.AS> and would likely be interested after TNT sells its contract logistics business, Credit Suisse analysts say.
"Our detailed analysis suggests that, without any synergies, an all debt funded deal at 40 euros per share would be 6 percent earnings accretive to UPS' (2007 estimated) earnings. Further calculations suggest that UPS could pay up to 54 euros per share, and such a deal would still be earnings neutral," the bank saysin a note to clients.
Credit Suisse says a deal to buy TNT would make strategic sense because it would boost UPS' market share in the European express market to a leading position.
Such a potential deal would stretch FedEx <FDX.N> far more than UPS, making UPS the more likely bidder, the bank says.
TNT shares are flat at 27.86 euros but outperform compared with a 1.5 percent fall in the Amsterdam blue-chip index <.AEX>
Reuters messaging: rm://[email protected]
11:21GMT 24May2006-European stocks extend losses as miners, oils drag
Wed May 24, 2006 7:47 AM ET
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U.S. package delivery company United Parcel Service <UPS.N> could afford to pay up to 54 euros per share for Dutch mail firm TNT <TNT.AS> and would likely be interested after TNT sells its contract logistics business, Credit Suisse analysts say.
"Our detailed analysis suggests that, without any synergies, an all debt funded deal at 40 euros per share would be 6 percent earnings accretive to UPS' (2007 estimated) earnings. Further calculations suggest that UPS could pay up to 54 euros per share, and such a deal would still be earnings neutral," the bank saysin a note to clients.
Credit Suisse says a deal to buy TNT would make strategic sense because it would boost UPS' market share in the European express market to a leading position.
Such a potential deal would stretch FedEx <FDX.N> far more than UPS, making UPS the more likely bidder, the bank says.
TNT shares are flat at 27.86 euros but outperform compared with a 1.5 percent fall in the Amsterdam blue-chip index <.AEX>
Reuters messaging: rm://[email protected]
11:21GMT 24May2006-European stocks extend losses as miners, oils drag
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