TNT takeover?
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TNT takeover?
UPS is attempting buy TNT. How many airplanes and pilots do they have? Do they utilize several companies ala DHL with different seniority lists? Curious what you folks think about this possibility.
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Hardcase,
What chance they are looking for a JAR AOC.Cant see it myself the way Europe operates but if Unification ever broke out it would protect the European operation.If not the case it would add to the exposure they already have in europe.
What chance they are looking for a JAR AOC.Cant see it myself the way Europe operates but if Unification ever broke out it would protect the European operation.If not the case it would add to the exposure they already have in europe.
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Don't think FedEx are looking for a European AOC, if that was the case they would have done it a while back. FedEx don't currently register their airplanes anywhere else other than the US and Canada (a few 727s, now 757s registered with Morning Star) Think they'd just be looking at obtaining that part of the market.
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FedEx has a reputation of keeping their intentions close to the vest. It is no secret they are really enthrallled being #3 in the European market and if anything ever happened we won't know about it until the ink is dry.
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It is no secret they are really enthrallled being #3
#2 TNT
#3 UPS
#4 FedEx
FedEx + TNT = #2 and still a long way from #1
UPS + TNT = #2 but the battle for #1 is on
Guess who is FedEx's new best friend?
I flew for TNT for almost 20 years. Hardly a week went by without a rumour floating round the crewroom about a take-over by DHL, UPS, FEDEX or Uncle Tom Cobley and All.
I await the result of the latest rumour with little interest.
I await the result of the latest rumour with little interest.
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In todays Bloomberg report:
FedEx Seen as Possible TNT Suitor
By Natalie Doss - Feb 21, 2012 8:56 AM CT
Enlarge image
FedEx Seen as Possible TNT Suitor
Adam Rountree/Bloomberg News.
A FedEx delivery truck is driven in New York.
A FedEx delivery truck is driven in New York. Photographer: Adam Rountree/Bloomberg News.
Enlarge image
FedEx Seen as Possible TNT Suitor as First UPS Bid Falls
David Paul Morris/Bloomberg
A FedEx Corp. employee unloads packages from a truck in San Francisco, California, U.S.
A FedEx Corp. employee unloads packages from a truck in San Francisco, California, U.S. Photographer: David Paul Morris/Bloomberg
FedEx Corp. (FDX) may try to jump into the bidding for TNT Express NV (TNTE) after the board of Europe’s second- largest package-delivery company rejected a $6.43 billion offer from United Parcel Service Inc. (UPS), investors and analysts said.
“FedEx is the most obvious” potential TNT suitor besides UPS, said Katrina Dudley, a portfolio manager at Mutual Series, a Franklin Templeton Investments unit whose funds own TNT stock. “It is a once-in-a lifetime chance for one of the players to create what I see as a strong global parcel franchise.”
TNT (TNTE) turned down UPS’s initial offer of 9 euros a share while saying Feb. 17 that talks continue. That leaves an opening for FedEx, operator of the world’s biggest cargo airline, to swoop in to keep Hoofddorp, Netherlands-based TNT out of UPS’s hands, said Kevin Sterling, an analyst at BB&T Capital Markets.
The prize would be expansion in Europe, where Deutsche Post AG (DPW)’s DHL leads in express deliveries, Sterling said in an interview. A bid by UPS, the largest package-delivery company, or Memphis, Tennessee-based FedEx has been the subject of speculation for years.
“FedEx would benefit more from buying TNT because they’re not as big in Europe,” said Sterling, who is based in Richmond, Virginia. “But UPS has made it very clear they want to continue to grow in Europe, that they like the opportunity in Europe, and they’ve been expanding their Cologne hub.”
TNT Surges
UPS’s unsuccessful offer was disclosed by TNT on Feb. 17, after Dutch trading ended. Investors signaled yesterday that they expect bidding to go higher, sending TNT surging 60 percent to 10.18 euros, 13 percent more than the offer price. The stock fell 2.5 percent today to 9.93 euros at 3:38 p.m. in Amsterdam.
“We fully expect another bid for TNT to come this week,” Jason Seidl, a New York-based analyst with Dahlman Rose & Co., wrote in a note to clients. He has a “hold” recommendation on UPS and a “buy” on FedEx.
UPS, based in Atlanta, fell 0.2 percent to $76.64 at 9:54 a.m. in New York, and FedEx (FDEX) slid 0.7 percent to $92.28.
“I don’t think this deal is over,” said David Campbell, an analyst at Thompson Davis & Co. in Richmond, Virginia. “I have a hunch TNT would come up with something to sustain the price and the talks” with UPS.
A person familiar with the TNT-UPS negotiations said the Dutch company is focused on UPS because FedEx has shown little interest so far in a bid. While UPS has confirmed being in talks, FedEx isn’t discussing TNT.
“As a matter of policy, we do not comment regarding corporate development matters,” Jess Bunn, a spokesman, said yesterday in an e-mail, reiterating FedEx’s response when TNT disclosed the overture from UPS.
2011 Spinoff
TNT was spun off in May from the Dutch postal operator, which is now named PostNL (PNL) and retains 29.9 percent of the company, according to data compiled by Bloomberg.
The company’s profit margin has been cut by more than half 2006, when, as the package-delivery unit of its former parent, earnings before interest and taxes was 9.6 percent of revenue. In 2010, adjusted Ebit represented 4.5 percent of revenue.
FedEx “could come in and offer 11 or 12 euros to make UPS sweat a little,” said Sterling, who like Campbell recommends buying UPS and FedEx stock. “Both of them would like to get it, and it’s a matter of who walks away first. UPS threw its cards on the table first and now we know that the floor is 9 euros.”
Acquisition History
Overseas purchases have helped FedEx’s global expansion. The company bought the Flying Tigers freight airline in 1989 to gain routes to 21 Asian countries, and spent $400 million in 2007 to take over a joint venture with China’s Tianjin Datian W. Group Co.
In late 2010, FedEx agreed to buy AFL Pvt. Ltd. and affiliate Unifreight India Pvt. Ltd., followed by MultiPack, a domestic express-delivery company in Mexico.
Dudley, the Mutual Series portfolio manager, said FedEx would be under pressure to come up with a counter to UPS’s offer for TNT or risk missing out on a purchase that would give it a competitive advantage overseas against the bigger U.S. company.
“If I were the CEO of another global parcel operator, I would be having people sharpen their pencils and look at the value of adding this asset to my franchise,” Dudley, who is based in Short Hills, New Jersey, said in an interview. “And also I would be considering the potential loss of positioning if I didn’t have the asset in my franchise.”
To contact the reporter on this story: Natalie Doss in New York at [email protected]
To contact the editors responsible for this story: Ed Dufner at [email protected]; Chad Thomas at [email protected]
FedEx Seen as Possible TNT Suitor
By Natalie Doss - Feb 21, 2012 8:56 AM CT
- Google +1
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- QUEUE
Q
Enlarge image
FedEx Seen as Possible TNT Suitor Adam Rountree/Bloomberg News.A FedEx delivery truck is driven in New York.
A FedEx delivery truck is driven in New York. Photographer: Adam Rountree/Bloomberg News.
Enlarge image
FedEx Seen as Possible TNT Suitor as First UPS Bid Falls David Paul Morris/BloombergA FedEx Corp. employee unloads packages from a truck in San Francisco, California, U.S.
A FedEx Corp. employee unloads packages from a truck in San Francisco, California, U.S. Photographer: David Paul Morris/Bloomberg
FedEx Corp. (FDX) may try to jump into the bidding for TNT Express NV (TNTE) after the board of Europe’s second- largest package-delivery company rejected a $6.43 billion offer from United Parcel Service Inc. (UPS), investors and analysts said.
“FedEx is the most obvious” potential TNT suitor besides UPS, said Katrina Dudley, a portfolio manager at Mutual Series, a Franklin Templeton Investments unit whose funds own TNT stock. “It is a once-in-a lifetime chance for one of the players to create what I see as a strong global parcel franchise.”
TNT (TNTE) turned down UPS’s initial offer of 9 euros a share while saying Feb. 17 that talks continue. That leaves an opening for FedEx, operator of the world’s biggest cargo airline, to swoop in to keep Hoofddorp, Netherlands-based TNT out of UPS’s hands, said Kevin Sterling, an analyst at BB&T Capital Markets.
The prize would be expansion in Europe, where Deutsche Post AG (DPW)’s DHL leads in express deliveries, Sterling said in an interview. A bid by UPS, the largest package-delivery company, or Memphis, Tennessee-based FedEx has been the subject of speculation for years.
“FedEx would benefit more from buying TNT because they’re not as big in Europe,” said Sterling, who is based in Richmond, Virginia. “But UPS has made it very clear they want to continue to grow in Europe, that they like the opportunity in Europe, and they’ve been expanding their Cologne hub.”
TNT Surges
UPS’s unsuccessful offer was disclosed by TNT on Feb. 17, after Dutch trading ended. Investors signaled yesterday that they expect bidding to go higher, sending TNT surging 60 percent to 10.18 euros, 13 percent more than the offer price. The stock fell 2.5 percent today to 9.93 euros at 3:38 p.m. in Amsterdam.
“We fully expect another bid for TNT to come this week,” Jason Seidl, a New York-based analyst with Dahlman Rose & Co., wrote in a note to clients. He has a “hold” recommendation on UPS and a “buy” on FedEx.
UPS, based in Atlanta, fell 0.2 percent to $76.64 at 9:54 a.m. in New York, and FedEx (FDEX) slid 0.7 percent to $92.28.
“I don’t think this deal is over,” said David Campbell, an analyst at Thompson Davis & Co. in Richmond, Virginia. “I have a hunch TNT would come up with something to sustain the price and the talks” with UPS.
A person familiar with the TNT-UPS negotiations said the Dutch company is focused on UPS because FedEx has shown little interest so far in a bid. While UPS has confirmed being in talks, FedEx isn’t discussing TNT.
“As a matter of policy, we do not comment regarding corporate development matters,” Jess Bunn, a spokesman, said yesterday in an e-mail, reiterating FedEx’s response when TNT disclosed the overture from UPS.
2011 Spinoff
TNT was spun off in May from the Dutch postal operator, which is now named PostNL (PNL) and retains 29.9 percent of the company, according to data compiled by Bloomberg.
The company’s profit margin has been cut by more than half 2006, when, as the package-delivery unit of its former parent, earnings before interest and taxes was 9.6 percent of revenue. In 2010, adjusted Ebit represented 4.5 percent of revenue.
FedEx “could come in and offer 11 or 12 euros to make UPS sweat a little,” said Sterling, who like Campbell recommends buying UPS and FedEx stock. “Both of them would like to get it, and it’s a matter of who walks away first. UPS threw its cards on the table first and now we know that the floor is 9 euros.”
Acquisition History
Overseas purchases have helped FedEx’s global expansion. The company bought the Flying Tigers freight airline in 1989 to gain routes to 21 Asian countries, and spent $400 million in 2007 to take over a joint venture with China’s Tianjin Datian W. Group Co.
In late 2010, FedEx agreed to buy AFL Pvt. Ltd. and affiliate Unifreight India Pvt. Ltd., followed by MultiPack, a domestic express-delivery company in Mexico.
Dudley, the Mutual Series portfolio manager, said FedEx would be under pressure to come up with a counter to UPS’s offer for TNT or risk missing out on a purchase that would give it a competitive advantage overseas against the bigger U.S. company.
“If I were the CEO of another global parcel operator, I would be having people sharpen their pencils and look at the value of adding this asset to my franchise,” Dudley, who is based in Short Hills, New Jersey, said in an interview. “And also I would be considering the potential loss of positioning if I didn’t have the asset in my franchise.”
To contact the reporter on this story: Natalie Doss in New York at [email protected]
To contact the editors responsible for this story: Ed Dufner at [email protected]; Chad Thomas at [email protected]
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You better check your facts there buddy. Purple's revenues are much larger thatn UPS's and a good portion is kept overseas. FedEx owns cargo companies in Mexico, China, Japan, India, New Zealand, and I believe Australia. According to cargo world FedEx carries almost double UPS's air cargo volume. Make no mistake, if FedEx doesn't go after TNT it is because they don't want to, not because they can't afford it.
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3 point, revenue ≠ profit and nor does volume.
Issue isn't who's got the biggest train set, issue is how much you make per box. Making $5 per box shipped means you got to ship double the volume to just generate the same total profits of your competitor who's earning $10/box.
According to FDX Annual Report 2010, revenues of $34.7b generated a net income of $2.0b & margin of 5.8%.
According to the UPS Annual Report 2010, revenues of $49.5b generated a net income of $3.5b & margin of 7.1%.
Don't know the split of what's carried by air v. truck but as UPS is primarily a trucking network whilst FDX an air network, we can trade stats all day as to who's got the biggest.
Point is, UPS generate more profits than FDX and have a higher profit margin. They're in a much stronger financial position to play for TNT.
Then again, nothing more motivating than a competitor trying to lock you out of the EU market.
Issue isn't who's got the biggest train set, issue is how much you make per box. Making $5 per box shipped means you got to ship double the volume to just generate the same total profits of your competitor who's earning $10/box.
According to FDX Annual Report 2010, revenues of $34.7b generated a net income of $2.0b & margin of 5.8%.
According to the UPS Annual Report 2010, revenues of $49.5b generated a net income of $3.5b & margin of 7.1%.
Don't know the split of what's carried by air v. truck but as UPS is primarily a trucking network whilst FDX an air network, we can trade stats all day as to who's got the biggest.
Point is, UPS generate more profits than FDX and have a higher profit margin. They're in a much stronger financial position to play for TNT.
Then again, nothing more motivating than a competitor trying to lock you out of the EU market.
(I might as well turn this thread to this subject now before someone else does later)
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That is exactly what I was wondering!
As previously stated, chances are high that they will try to keep routes and current contracts but what about Belgian (or Austrian) registered aircraft's and European crews?
As previously stated, chances are high that they will try to keep routes and current contracts but what about Belgian (or Austrian) registered aircraft's and European crews?
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That is exactly what I was wondering!
As previously stated, chances are high that they will try to keep routes and current contracts but what about Belgian (or Austrian) registered aircraft's and European crews?
As previously stated, chances are high that they will try to keep routes and current contracts but what about Belgian (or Austrian) registered aircraft's and European crews?
