FedEx claims TNT “too expensive”
FedEx dampened speculation over the possible acquisition of TNT’s express division by labelling the company “too expensive”. The operator’s chief financial officer (CFO) Alan Graf made the admission in response to a question during a JP Morgan conference in New York.
Graf explained that FedEx does not necessarily have to make acquisitions in Europe, claiming that “we have our own organic plans” in regards to growing the Memphis-based company’s exposure in Europe. However, Graf added that FedEx “looks at a lot of things all the time”.
In December, TNT announced the intention to separate its Mail and Express into two listed companies.
TNT’s CEO Peter Bakker – who will leave the company after the separation process has been completed – confirmed that the proposals will be set for approval at the company’s AGM in May.
“Our strong management teams are hard at work creating independent futures. All preparations for the AGM at which the separation proposal will be put up for approval are well underway,” Bakker said last month.
During the analysts meeting, Graf also confirmed that FedEx’s movement in Japan will continue to grow during the reconstruction process.
Graf also said that the company had placed an order for four Boeing 777s last week.
Each aircraft is worth about $270m; however FedEx is likely to benefit from a discount on the total $1.08bn order, according to reports.
