UPS presses TNT for takeover
20 / 02 / 2012
BOTH TNT and UPS are continuing talks about a possible takeover despite TNT rejecting UPS’ initial US6.43 billion offer. However, with the euro weakening against the dollar TNT’s cautious negotiation standpoint is likewise weakening.
The Dutch TNT Express is Europe’s second-largest express operator, behind DHL. While it had a profit of €62 million in 2010, last year it is estimated it lost €270 million. Part of the loss was due to poor results in its new Brazilian arm and devaluing of its fleet of aircraft.
TNT Express split from its parent company – now known as PostNL ¬– in May last year. PostNL still has a 29.9 per cent stake in the company.
There have been rumours for years that either FedEx or UPS wanted to takeover TNT as a way to move into the European market and challenge DHL.
Speaking at the release of TNT’s fourth-quarter results, the company’s, chief executive officer Marie-Christine Lombard, said she thinks TNT can grow twice as fast as the European economy “in the medium term”. She highlighted pharmaceuticals as being of particular interest for growth.
However, she went on to reveal that she is looking for “strategic partnerships” for its businesses in Brazil and China, which usually means it wants to sell them in part or whole.