TNT considers mail unit IPO
DUTCH post and logistics company TNT is considering a listing or partnerships for its mail unit, as investors grow concerned over poor performance.
Increased competition due to European mail liberalisation and a rise in electronic communications have seen TNT struggle with volumes and costs at its mail unit.
TNT’s management has already held strategy talks with an activist shareholders’ consortium comprising Jana Partners and Canadian asset manager Alberta Investment Management, which see value in splitting off the express and mail units.
TNT chief executive Peter Bakker said the move to carve out the mail unit is not due to shareholder activism.
“From my vantage point, there is no shareholder pressure. There are, of course, shareholders who have made their views known,” said Bakker.
Bakker said he is open to discussions with potential buyers of TNT’s express unit. But he played down the likelihood of a bid.
US rivals FedEx and United Parcel Service were understood to be interested back in 2008.
Analysts have valued the mail unit at €3bn to €3.5bn (£2.6bn-£3bn).