Integrator stocks fluctuate amid takeover speculation, market slowdown and high oil prices

Shares of TNT, UPS, FedEx and DHL parent Deutsche Post World Net have fluctuated dramatically over the last two months due to a mix of factors including takeover speculation, the impact of the economic slowdown and rising oil prices, a CEP-Research analysis showed.
TNT, UPS and FedEx ended August showing increases compared to the end of June after repeated speculation during July and August that UPS and FedEx were each in talks with TNT over a possible acquisition. The reported deals followed the recent economic downturn and rising fuel costs that have hit the demand for package deliveries and led to a revival of merger discussions.
TNT shares were up 13.29pct to EUR 25.50 as of August 29 compared to 26 June.
The two US integrators, FedEx and UPS, have also been impacted by the takeover rumours with their shares rising over the last two months, although other factors such as the US downturn and the strong rise in fuel prices also played major roles in the share performance.
FedEx experienced a moderate share price increase of 5.71pct as of August 29 compared to the end of June.
DPWN shares were negatively impacted during the last two months by rising oil prices and worsening economic conditions as well as by the widespread reports about the restructuring of the DHL Express US business, and political opposition to the planned Wilmington hub closure in particular. The company’s shares dropped by 4.98pct to EUR 15.85 as of August 29 compared to two months previously.

Shares of TNT, UPS, FedEx and DHL parent Deutsche Post World Net have fluctuated dramatically over the last two months due to a mix of factors including takeover speculation, the impact of the economic slowdown and rising oil prices, a CEP-Research analysis showed.

TNT, UPS and FedEx ended August showing increases compared to the end of June after repeated speculation during July and August that UPS and FedEx were each in talks with TNT over a possible acquisition. The reported deals followed the recent economic downturn and rising fuel costs that have hit the demand for package deliveries and led to a revival of merger discussions.

TNT shares were up 13.29pct to EUR 25.50 as of August 29 compared to 26 June. TNT experienced the most dramatic rise and fall in July. After the Financial Times reported at the beginning of July that FedEx was in preliminary talks to acquire TNT, the company’s shares jumped more than 25pct from EUR 18.51 to EUR 23.26 and kept rising in the next few days by nearly 40pct. About two weeks later, however, it was another report from The Wall Street Journal about the end of the takeover talks that made TNT shares fall again as much as 18 pct. This represented the biggest drop since the initial public offering in June 1998.

The two US integrators, FedEx and UPS, have also been impacted by the takeover rumours with their shares rising over the last two months, although other factors such as the US downturn and the strong rise in fuel prices also played major roles in the share performance.

FedEx experienced a moderate share price increase of 5.71pct as of August 29 compared to the end of June. Shortly after The Financial Times report about the possible acquisition, FedEx shares jumped 8pct in 3 days from USD 73.01 to USD 79.52. UPS shares rose in a similar way impacted by some reports in August saying it might consider buying TNT. As of August 29 compared to 26 June, UPS shares rose by 6.61pct to USD 64.12.

DPWN shares were negatively impacted during the last two months by rising oil prices and worsening economic conditions as well as by the widespread reports about the restructuring of the DHL Express US business, and political opposition to the planned Wilmington hub closure in particular. The company’s shares dropped by 4.98pct to EUR 15.85 as of August 29 compared to two months previously.