BrowntailWhale
15th Mar 2012, 21:09
TNT Express-UPS deal to come after Friday: sources | Reuters (http://www.reuters.com/article/2012/03/15/us-tnt-ups-idUSBRE82E11N20120315)
(Reuters) - United Parcel Service (UPS.N) and TNT Express are unlikely to announce a deal on Friday when they need to update the market about the status of their merger talks, three sources close to the talks said, but a deal could come soon after that.
The parties need more time to hammer out final details, the sources said, but they are getting closer to an agreement.
"I don't think it will take several more weeks", one of the sources said.
UPS had four weeks after it approached TNT Express to clarify its intentions under Dutch takeover law.
"Lots of concessions were made on the social front", a second source, who is close to UPS, said.
"TNT performance is a big issue", the same source added.
Dutch unions sent a letter to TNT Express's board after consulting employees on their concerns regarding an acquisition by UPS. Job protection, employment contracts and the location of the future company were among the main concerns, said Marc van Kerkhoff, who represents TNT Express employees.
Price discussions were put on hold after the Dutch parcel-delivery firm rejected a 4.9 billion-euro ($6.38 billion) proposal from UPS last month, and have yet to resume, the first and the second source said.
UPS is confident that its bid for TNT Express won't meet significant anti-trust hurdles and would be approved by the European watchdog in phase 1, the second source said.
Some shareholders are still hoping for an improved offer, but UPS is seen as unlikely to improve by much its last offer of 9 euros a share, given TNT's poor results and the absence of a counter bidder.
TNT Express has since reported weaker than expected fourth-quarter results and given a bleak economic outlook.
TNT Express declined to comment.
(Reuters) - United Parcel Service (UPS.N) and TNT Express are unlikely to announce a deal on Friday when they need to update the market about the status of their merger talks, three sources close to the talks said, but a deal could come soon after that.
The parties need more time to hammer out final details, the sources said, but they are getting closer to an agreement.
"I don't think it will take several more weeks", one of the sources said.
UPS had four weeks after it approached TNT Express to clarify its intentions under Dutch takeover law.
"Lots of concessions were made on the social front", a second source, who is close to UPS, said.
"TNT performance is a big issue", the same source added.
Dutch unions sent a letter to TNT Express's board after consulting employees on their concerns regarding an acquisition by UPS. Job protection, employment contracts and the location of the future company were among the main concerns, said Marc van Kerkhoff, who represents TNT Express employees.
Price discussions were put on hold after the Dutch parcel-delivery firm rejected a 4.9 billion-euro ($6.38 billion) proposal from UPS last month, and have yet to resume, the first and the second source said.
UPS is confident that its bid for TNT Express won't meet significant anti-trust hurdles and would be approved by the European watchdog in phase 1, the second source said.
Some shareholders are still hoping for an improved offer, but UPS is seen as unlikely to improve by much its last offer of 9 euros a share, given TNT's poor results and the absence of a counter bidder.
TNT Express has since reported weaker than expected fourth-quarter results and given a bleak economic outlook.
TNT Express declined to comment.