TNT shares jump 60pc as sale talks with UPS heat up
INVESTORS in Dutch freight and delivery firm TNT Express are pressing for a higher offer from US-based United Parcel Services, driving shares up more than 60 per cent to an all-time high yesterday.
TNT said on Friday it had rejected an offer from UPS, the world’s largest package delivery company, of €9 per share which valued the company at €4.9bn (£4.09bn), but that both companies were still in talks over a possible deal.
A source close to the talks said shareholders wanted to sell their stock and hoped to get between €9.50 and €10 per share for a company which offers Atlanta-based UPS a bigger presence in Europe.
Some TNT investors had called for a management change because of poor revenue, profits and share price performance.
“Everyone is expecting a higher bid,” SNS fund manager Corne van Zeijl said yesterday, adding that rival FedEx may enter the fray. He said he expected UPS would win the prize.
“FedEx can possibly come with an offer. Ten euros per share is possible. Because FedEx is smaller they can finance it less easily.”
Van Zeijl said he was holding out for as much as €11 per share.
Dutch post firm PostNL, which is TNT’s biggest shareholder with a 29.9 per cent stake and holds the key to any talks with a buyer, declined to comment.
TNT shares hit an all-time high of €10.24, up more than 60 per cent from Friday’s closing price of €6.34. The stock closed at €10.18.