Netherlands cuts TNT stake to 10 percent

The Dutch State has cut its stake in mail and logistics company TNT (TNT.AS: Quote, Profile, Research) by almost half to about 10 percent, which it plans to keep until the postal market in the Netherlands is fully liberalised.

The finance ministry said it sold 43.4 million shares to ABN AMRO (AAH.AS: Quote, Profile, Research) and Citigroup (C.N: Quote, Profile, Research), raising about 900 million euros ($1.1 billion).

Dealers said the banks were placing the shares in a range of 20.80 to 20.95 euros each. The deal is equivalent to about 30 days’ trading volume.

TNT shares fell 0.2 percent to 20.83 euros by 0900 GMT, in line with the DJ Stoxx Industrial Index, in which they are included.

Fortis Bank analyst Marten Bakker said the move could help TNT’s shares.

“It reduces the overhang, which has always been an argument against the stock,” Bakker said.

TNT did not participate in the stake sale, a company spokeswoman said. In September, when the government last sold TNT shares to cut its stake to 19 percent, the company had bought back around a third of the shares.

A finance ministry spokesman said the government planned to keep its remaining stake until the full liberalisation of the Dutch postal market, which is expected for 2007.

The government also retains its “golden share”, which gives it special rights regarding fundamental changes in the company structure.

The finance ministry said the government had agreed not to sell any additional TNT shares for a period of 360 days.

“The State of The Netherlands will retain its remaining 10 percent stake in TNT N.V. following the share placement until the Minister of Finance has discussed any further reduction of this stake with Parliament,” the ministry said.

Goldman Sachs International advised the Dutch government on the transaction. (additional reporting by Alison Tudor in London)