TNT shares up on UPS talks
Tuesday, 12 August 2008
AMSTERDAM, Aug 11 (Reuters): Shares in Dutch TNT NV rose more than 6.0 per cent Monday after a source said Europe's No.2 mail and logistics company was in talks with US rival United Parcel Service (UPS.N).
The source, who declined to be identified, told Reuters that the discussions were in the early stages but could provide no further detail.
TNT declined to comment. A UPS spokesman said Sunday the company would never discuss rumors or speculation about mergers or acquisitions.
The Sunday Telegraph reported that UPS was planning a 10 billion euros ($15.2 billion) bid for TNT, which has a market value of about 9.6 billion euros.
TNT shares have fluctuated wildly in July and August, first on talk that FedEx (FDX.N) had prepared, and then abandoned, a bid. They have traded between 18.49 euros, a four-year-low, and 27.25 euros in the last two months.
TNT led gainers in the DJ Stoxx industrial goods and services index (.SXNP) and were up 5.1 per cent to 26.64 euros by 0738 GMT.
Analysts said rivals looking to expand their European operations would be mainly interested in TNT's express delivery unit, which accounts for two-thirds of its sales and is seen as able to ride out any economic downturn.
The source, who declined to be identified, told Reuters that the discussions were in the early stages but could provide no further detail.
TNT declined to comment. A UPS spokesman said Sunday the company would never discuss rumors or speculation about mergers or acquisitions.
The Sunday Telegraph reported that UPS was planning a 10 billion euros ($15.2 billion) bid for TNT, which has a market value of about 9.6 billion euros.
TNT shares have fluctuated wildly in July and August, first on talk that FedEx (FDX.N) had prepared, and then abandoned, a bid. They have traded between 18.49 euros, a four-year-low, and 27.25 euros in the last two months.
TNT led gainers in the DJ Stoxx industrial goods and services index (.SXNP) and were up 5.1 per cent to 26.64 euros by 0738 GMT.
Analysts said rivals looking to expand their European operations would be mainly interested in TNT's express delivery unit, which accounts for two-thirds of its sales and is seen as able to ride out any economic downturn.