UPS dismisses TNT bid interest, TNT shares fall
A senior executive of United Parcel Service on Monday dismissed talk of a USD 15 billion takeover bid for Dutch rival TNT as a ‘rumour’, saying an acquisition would devalue its own shares.
The comments pushed TNT shares down by nearly 10 percent on Monday, erasing earlier gains posted after a source familiar with the talks told Reuters the U.S. company was in the early stage of discussions with Europe’s number 2 mail and logistics group.
‘That rumour again?’ Dan Brutto, president of the company’s international business, told Reuters in an interview.
‘I look at that (TNT share price) and said, ‘someone says we’re going to buy something that devalues our shares too at the same time’,’ he said, adding however that acquisitions were not something he oversaw directly.
‘But we always look at different things and try to fit (them) into the puzzle.’ He said UPS hoped to make some Chinese acquisitions.
Earlier on Monday, shares in Europe’s number 2 mail and logistics company gained more than 6 percent after a source told Reuters on Sunday that UPS was in the early stage of discussions with TNT.
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