DPWN drops bid to buy Airborne Express

Deutsche Post World Net (DPWN) is not negotiating to buy Airborne Express – for the time being.
An IFW source said discussions reached due diligence stage recently before breaking down, a suggestion supported by a rise above US$20 ( t22.80) in the carrier ‘s US share price last month from a low point of just $9 ( t10.26) in October.

DHL, now a DPWN company, needs critical mass to compete in the domestic US market. The integrator had been having on-off talks with Airborne for 10 years, said Ed Wolfe from US investment bank Bear Stearns.

“The issue is that, technically, a foreign company can’t own more than 25% of a US airline.

UPS and FedEx would react immediately – though if open skies goes ahead, we can get rid of this antiquated structure, ” said Wolfe.

Posted: 15/04/2002
IFW