TNT to sell logistics division for at least 1.15 Bln Euro

TNT NV intends to sell its Logistics division, which has been up for sale since December 2005, for at least its current book value of 1.15 bln euro ($1.471 bln), CEO Peter Bakker said on May 26, 2006.

TNT expects to complete the divestment process in the second half of 2006. There are several options for using the sale proceeds, including an additional share buyback programme, a one-off dividend distribution and investments in the company’s further growth, Bakker added.

The CEO declined to comment whether U.S. express carrier and package delivery company United Parcel Services Inc (UPS) is interested in a potential merger with TNT.

UPS said in April 2006, it was ready for an extremely large acquisition, which revived old rumours that UPS ( www.ups.com ) could make a bid for TNT ( www.tnt.com ).

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