UPS says TNT talks continue, plans bid

AP News
Posted: Mar 16, 2012 7:05 AM
UPS says TNT talks continue, plans bid

U.S. delivery company United Parcel Service Inc. says it is still in talks to buy Dutch-based TNT Express NV and plans a formal bid by May 12.

TNT, Europe's second-largest express delivery company, rejected an "informal" offer by UPS of euro9 per share on Feb. 17, which valued the company at around $6.4 billion (euro4.9 billion). TNT shares opened Friday at euro9.229.

The talks were disclosed on the eve of TNT reporting a large fourth quarter loss.

UPS said Friday talks were "constructive."

TNT managers have a large incentive to strike a deal: there are no other bidders, and if UPS walks away, they will be left explaining to shareholders why they turned down the initial offer, which was 42 percent above the share price at the time.

TNT's annual meeting is April 11.