TNT shares up after report UPS mulls buy

[Iflyforcash]

TNT shares up after report UPS mulls buy
Fri Sep 30, 2005 5:55 AM ET
(Adds analyst, no comment from TNT)
AMSTERDAM, Sept 30 (Reuters) - Shares TNT NV <TNT.AS> rose 3.6 percent on Friday after a German newspaper reported UPS <UPS.N> saw the Dutch mail and logistics company as a possible takeover target.
German newspaper Die Welt, in an interview in its Friday edition, cited UPS Senior Vice President Kurt Kuehn as saying: "It is a possibility. We are looking at it."
UPS Chief Executive Michael Eskew told the paper UPS considered acquisitions in the mail business and that he did not exclude the possibility of hostile takeovers.
ING analyst Andrew Beh said it was the first time UPS had specifically mentioned its interest in TNT.
"What is significant from a superficial trading perspective is that the words 'bid', 'UPS' and 'TNT' have appeared in the same sentence. We haven't had that before in print from UPS," Beh said.
TNT shares had risen 3.6 percent to 29.73 euros by 0935 GMT.
ING's Beh said UPS was likely to wait for TNT to sort out its tax troubles before making a move -- TNT said last week it was investigating tax irregularities at subsidiaries that could impact its results.
"Also, it is unlikely that UPS wants to run Dutch mail, and there is still a 10-percent government overhang. None of these are insuperable issues; they will just take time to sort out," he said.
TNT declined comment.

[Iflyforcash]

UPS squashes TNT takeover talk, shares off highs
Fri Sep 30, 2005 10:08 AM ET

(Recasts with UPS denial)

By Niclas Mika and Ben Klayman

AMSTERDAM/DETROIT, Sept 30 (Reuters) - UPS (UPS.N: Quote, Profile, Research) said on Friday its executives had never expressed an interest in buying Dutch mail and logistics company TNT (TNT.AS: Quote, Profile, Research) , after a German newspaper report sent TNT's shares soaring.

United Parcel Service Inc. (UPS), the world's largest package carrier, said senior executives had met a group of European reporters at its Atlanta headquarters on Wednesday and questions were asked about the company's acquisition strategy.

"At no time during these discussions did UPS executives specifically discuss individual companies as acquisition targets," UPS said in a statement.

German newspaper Die Welt had said UPS Senior Vice President Kurt Kuehn, when asked about a possible interest in TNT, replied: "It is a possibility. We are looking at it." TNT shares, which had risen as much as 4.5 percent on the newspaper's report, pared gains after the UPS statement, but were still up 3.0 percent at 20.61 euros by 1408 GMT.

"While press reports have sought to link UPS to a number of European companies, including Exel (Plc (EXL.L: Quote, Profile, Research ) ) and TNT, UPS continues to follow its strict policy of never discussing rumors or speculation about specific merger or acquisition targets," UPS said.

Die Welt also quoted UPS Chief Executive Michael Eskew as saying the company had considered acquisitions in the mail business and that he did not exclude the possibility of hostile takeovers.

Analysts have said UPS and TNT would make a good fit but pointed to obstacles, including a 10-percent stake held by the Dutch government, which also has a golden share.

The Dutch mail group declined to comment.

TNT has a leading position in the European express market and is the world's second biggest contract logistics provider after Exel, the target of an agreed 3.7 billion-pound ($6.5-billion) takeover bid by Deutsche Post (DPWGn.DE: Quote, Profile, Research) .