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Fedex and UPS expected to fight DHL-Airborne merger

FedEx Corp. and United Parcel Services are not expected to stand silently by while DHL Worldwide Express consummates its $1.05 billion takeover of Airborne.
FedEx and UPS have already pushed the Department of Transportation to look at the ownership of DHL. The companies claim that the DHL is really just an arm of the German government. “Both UPS and FedEx are going to object to DHL’s acquisition of Airborne’s ground base assets under the cover of regulatory and anticompetitive grounds,” said analyst Peter Jacobs, of Ragen MacKenzie, a division of Wells Fargo Investments,

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Airborne in talks with Deutsche Post

Airborne on Monday confirmed it was in talks with Deutsche Post on a deal that could be worth USD 1bn and see the German postal operator buy the the US’s third largest express delivery company’s ground operations for an undisclosed cash sum at a premium to the group’s current share price.

Airborne said that such a deal with DHL Worldwide Express, a subsidiary of Deutsche Post, would involve setting up an independent public company that would continue to be wholly owned by Airborne’s shareholders.

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Securicor sells 50% of German JV for Euro 284m

Securicor, the private security group, on Monday said it had reached agreement to sell its 50 per cent stake in its UK parcels distribution business to Deutsche Post for Euro 284m (USD 299m), including assumed debt. The German postal operator, the other shareholder in the joint venture, will pay Euro 247m cash on completion for the 50 per cent stake it does not already own in Securicor Distribution. Securicor’s share of the venture’s net debt amounted to Euro 37m, bringing the total value of the disposal to Euro 284m.

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Service enhancements set for Global Express Mail delivery in Europe

Global Express Mail (GEM) customers can look for better service and more detailed and accurate tracking in eight additional European countries.

These improvements come as a result of expanded delivery of GEM — from six to 14 countries — by Royal Mail Group’s Pan-European parcel delivery company, General Logistics Systems (GLS).

According to James P. Wade, vice president, International Business, the Postal Service entered the agreement with Royal Mail to create a new model for package delivery in Europe — using a single delivery agent to improve delivery service and tracking while maintaining current rates.

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UK Royal Mail threatens regulator over price cap

Allan Leighton, the chairman of the Royal Mail, is to seek a judicial review against the postal regulator, Postcomm, if it goes ahead with plans to cap charges that other companies pay to use the postal network. The Royal Mail claims Postcomm’s proposals would cost it up to pounds 1.2bn. This would more than wipe out gains from a 1p rise in the price of first and second class stamps, agreed last week.

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UK Royal Mail job losses evenly spread

Royal Mail is likely to spread job losses evenly when it makes 15,000 of its staff redundant later this year, although there will be some regional variations. Last June, Royal Mail said it would make the job cuts as part of a wide-ranging restructuring of the loss-making service. The redundancies represent almost 15 per cent of the 107,000 workforce.

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