Tag: Europe

The head of Germany’s Deutsche Post yesterday defended his decision to launch a GBP 3.7bn agreed bid for Britain’s Exel in a deal that will mark a further round of consolidation in the global logistics business. Deutsche Post is offering GBP 2.44 a share, 24% above the Exel closing price before announcement of the initial approach from the German company and 48% higher than the price at which Exel shares were changing hands before the UK company found itself at the centre of bid speculation in July. Klaus Zumwinkel, Deutsche Post’s chief executive, shrugged off some analysts’ concerns that his company had paid a stiff price for the British concern, arguing that the combination of the two businesses would create the world’s biggest logistics company. Rejecting criticism over the price, which is more than twice the pounds 1.6bn the group paid to acquire DHL two years ago, Mr Zumwinkel said the combined logistics business and parcels operation would provide growing earnings to offset stagnant profits from the core mail division. “We can expect attractive growth rates in the future . . . driven by global trade and increased outsourcing.”