Go Back  PPRuNe Forums > Aircrew Forums > Freight Dogs
Reload this Page >

TNT takeover?

Freight Dogs Finally a forum for those midnight prowler types who utilise the unglamorous parts of airports that many of us never get to see. Freight Dogs is for pilots and crew who operate mostly without SLF.

TNT takeover?

Old 17th Feb 2012, 23:59
  #1 (permalink)  
Thread Starter
 
Join Date: Mar 2010
Location: USA
Posts: 6
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.
precontact is offline  
Old 18th Feb 2012, 10:36
  #2 (permalink)  
 
Join Date: Feb 2001
Location: Europe
Posts: 1,048
TNT Airways is around +/- 15x BAE146, 10x 737, a couple of 777 and couple of 744. The rest is wet lease / subcharter.
CargoOne is offline  
Old 18th Feb 2012, 12:13
  #3 (permalink)  
 
Join Date: Dec 2002
Location: Europe
Posts: 167
FedEx are having a look too!!!
hardcase is offline  
Old 18th Feb 2012, 20:04
  #4 (permalink)  
 
Join Date: Jul 2007
Location: USA
Posts: 370
First offer was rejected as the BOD has confirmed. However the negotiations are ongoing.
B-HKD is offline  
Old 18th Feb 2012, 20:27
  #5 (permalink)  
 
Join Date: Jun 2009
Location: Belgium
Posts: 104
Could be a massive big bang for one of the hubs ...
Acid-drop is offline  
Old 18th Feb 2012, 21:04
  #6 (permalink)  
 
Join Date: Jul 2000
Location: Sleepy Hollow
Posts: 308
merger

It would make sense - maybe consolidate to STN, plenty of room there
old-timer is offline  
Old 18th Feb 2012, 23:20
  #7 (permalink)  
 
Join Date: Sep 2007
Location: dublin
Posts: 77
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.
fingal flyer is offline  
Old 19th Feb 2012, 10:34
  #8 (permalink)  
 
Join Date: Apr 2002
Location: EGSS
Posts: 912
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.
Flightmech is offline  
Old 20th Feb 2012, 15:51
  #9 (permalink)  
 
Join Date: Aug 2009
Location: st louis
Posts: 79
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.
3pointlanding is offline  
Old 21st Feb 2012, 06:52
  #10 (permalink)  
gtf
 
Join Date: Sep 2007
Location: Here today, elsewhere tomorrow
Posts: 90
It is no secret they are really enthrallled being #3
#1 DHL
#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?
gtf is offline  
Old 21st Feb 2012, 11:59
  #11 (permalink)  
 
Join Date: Aug 2009
Location: st louis
Posts: 79
My error if FedEx is #4. I forgot UPS.
3pointlanding is offline  
Old 21st Feb 2012, 14:13
  #12 (permalink)  
 
Join Date: Oct 2001
Location: UK
Age: 79
Posts: 3,727
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.
JW411 is offline  
Old 21st Feb 2012, 18:26
  #13 (permalink)  
 
Join Date: Aug 2009
Location: st louis
Posts: 79
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]
3pointlanding is offline  
Old 21st Feb 2012, 21:12
  #14 (permalink)  
 
Join Date: Aug 2001
Location: UK (reluctantly)
Posts: 251
I'd be surprised if FDX could afford to offer.... their margins are about half of UPS and UPS is cash rich. I bet there's a lot of sweating in MEM either way...
Trash 'n' Navs is offline  
Old 22nd Feb 2012, 11:37
  #15 (permalink)  
 
Join Date: Aug 2009
Location: st louis
Posts: 79
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.
3pointlanding is offline  
Old 22nd Feb 2012, 21:11
  #16 (permalink)  
 
Join Date: Aug 2001
Location: UK (reluctantly)
Posts: 251
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.
Trash 'n' Navs is offline  
Old 22nd Feb 2012, 21:30
  #17 (permalink)  
 
Join Date: Apr 2002
Location: EGSS
Posts: 912
Whoever buys them it will probably end up with more US pilots flying EU routes (I might as well turn this thread to this subject now before someone else does later)
Flightmech is offline  
Old 22nd Feb 2012, 22:26
  #18 (permalink)  
 
Join Date: Aug 2007
Location: Mare Nostrum
Age: 37
Posts: 1,399
Yeah, what would most likely happen to TNT pilots if a UPS takeover occurred?
zondaracer is offline  
Old 23rd Feb 2012, 16:41
  #19 (permalink)  
 
Join Date: Sep 2008
Location: Paris
Age: 36
Posts: 4
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?
totolariko is offline  
Old 23rd Feb 2012, 17:28
  #20 (permalink)  
 
Join Date: Jun 2008
Location: Balpamyass Palace
Age: 50
Posts: 265
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?
Hmmm you'd better look for a green card ASAP dude. They won't let you fly on November I am affraid.
wind check is offline  

Thread Tools
Search this Thread

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information -

Copyright © 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.