UPS, TNT Express Said to Near Agreement
 

UPS, TNT Express Said to Near Agreement - Bloomberg

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UPS, TNT Express Said to Near Agreement After Initial Rejection
By Matthew Campbell - Mar 8, 2012

United Parcel Service Inc. (UPS) is nearing an agreement to acquire TNT Express NV (TNTE) after Europe’s second-largest express-delivery service rejected its initial 4.9 billion euro ($6.5 billion) offer, according to people familiar with the discussions.

The two sides are close to a deal on both price and conditions attached to the offer that may lead to job cuts and require divestitures to win antitrust approval, the people said, declining to be identified as the talks are private. An announcement may come as soon as next week, one of the people said.

TNT, based in Amsterdam, is the smallest of the four major global delivery services companies, making it a longtime subject of merger speculation. Adding its European footprint to that of UPS would give the U.S. company a stronger foothold in the region and an advantage over its rival FedEx Corp.. (FDX)

While talks are ongoing, the companies may still fail to reach an agreement, the people said.

Spokesmen for UPS and TNT declined to comment on the negotiations.

TNT said on Feb. 17 that it had rejected a takeover bid from UPS, which offered 9 euros for each TNT share. The shares currently trade at about 9.3 euros.

Under Dutch law, UPS has to clarify its intentions to the market by March 16, within four weeks of its first proposal being announced.

To contact the reporter on this story: Matthew Campbell in London at [email protected]

To contact the editor responsible for this story: Jacqueline Simmons at [email protected]

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