Deutsche Post weighing Tibbett & Britten bid
Germany’s postal giant, Deutsche Post, is talking to investment banks to work out if it can table a counter-bid to buy Tibbett & Britten, the British logistics group.
Deutsche Post met a number of advisers last week to see if it could top the Pounds 328m agreed bid that has already been made by Exel. Tibbett’s distribution network would be an ideal platform for the German company to expand in Britain and achieve its ambition of competing head-on against Royal Mail. However, most analysts believe Deutsche will have to work hard to outbid the top- dollar offer that has been made by Exel. They also say the timing of Exel’s bid could not have come at a worse time. Deutsche is currently struggling to demerge its banking arm, Postbank.
The price being offered by Exel equates to 23 times historic earnings. Exel was prepared to bid high to ensure that a rival offer did not emerge, but the price also reflects the fact that Pounds 20m of costs can be stripped out of the enlarged company.
Exel is expected to publish its offer document this week and the deal will be done without due diligence.
The takeover would give the enlarged group a dominant position in Britain, supplying some of our biggest companies. It would also expand Exel’s international footprint.
