DHL subsidiary to bid for US cargo airline

Astar Air Cargo, a US cargo airline in which DHL Express, the express and logistics subsidiary of German postal service operator Deutsche Post, holds a minority stake, has launched a takeover bid on US rival ABX. Astar is offering USD 7.75 per share in ABX, which puts the value of the company at USD 455m; it is possible that the company may have to up its bid, however, as shares in ABX climbed to USD 8.07 following the announcement of the offer.

ABX was part of US transport company Airborne, which has since been taken over by DHL Express, until 2003; DHL is still virtually the airline’s only customer, representing 95 per cent of turnover. Over 95 per cent of the volume of freight transported by Astar is also for DHL. A spokesperson for Deutsche Post has welcomed the bid, saying that considerable improvements in efficiency are expected.