TNT shares jump on report of Fedex talks
Shares in TNT NV jumped almost 30 per cent on Monday 14th July after a report that FedEx Corp. is in preliminary talks to acquire it, raising the prospect of a bidding war for the Dutch mail company.
The Financial Times newspaper reported on Saturday that FedEx Corp. wanted to add to its European parcel delivery service and that both United Parcel Service and FedEx have “coveted” TNT’s European parcel business.
TNT and FedEx declined to comment on the report.
“Such a move would make a lot of strategic sense for FedEx, given its predominantly US-business gearing and the weakness in the US Express market,” said ING analyst Axel Funhoff in a note.
“Should FedEx make a formal bid for TNT – there could be a quick counter bid from UPS, who should be equally interested in TNT but which has deeper pockets.”
TNT shares were up 26 per cent at EUR 23.26 by 0946 GMT, making it the main gainer in the DJ Stoxx industrial goods and services index, which was up 2 per cent.
The smallest of the world’s top four express delivery companies has often been seen as a target for its bigger peers and some analysts say this could be the opportunity for them to pounce.
TNT shares had shed about a third of their value since the start of the year due to uncertainty over its German business, slowing economic growth and rising oil prices.
Europe’s second-biggest mail and Logistics Company by market value, which competes with Deutsche Post, is not active in the domestic U.S. market. It has a strong presence in Europe and is expanding in Asia and South America.
Shares in TNT NV jumped almost 30 per cent on Monday 14th July after a report that FedEx Corp. is in preliminary talks to acquire it, raising the prospect of a bidding war for the Dutch mail company.
The Financial Times newspaper reported on Saturday that FedEx Corp. wanted to add to its European parcel delivery service and that both United Parcel Service and FedEx have “coveted” TNT’s European parcel business.
TNT and FedEx declined to comment on the report.
“Such a move would make a lot of strategic sense for FedEx, given its predominantly US-business gearing and the weakness in the US Express market,” said ING analyst Axel Funhoff in a note.
“Should FedEx make a formal bid for TNT – there could be a quick counter bid from UPS, who should be equally interested in TNT but which has deeper pockets.”
TNT shares were up 26 per cent at EUR 23.26 by 0946 GMT, making it the main gainer in the DJ Stoxx industrial goods and services index, which was up 2 per cent.
The smallest of the world’s top four express delivery companies has often been seen as a target for its bigger peers and some analysts say this could be the opportunity for them to pounce.
TNT shares had shed about a third of their value since the start of the year due to uncertainty over its German business, slowing economic growth and rising oil prices.
Europe’s second-biggest mail and Logistics Company by market value, which competes with Deutsche Post, is not active in the domestic U.S. market. It has a strong presence in Europe and is expanding in Asia and South America.
