TNT Shares Jump Sharply As Investors Bet On A Higher Price |
| Wall Street Journal - Feb 20, 2012 |
Shares in Dutch package shipper TNT Express (TNTE.AE) Monday jumped significantly higher than the value of a rejected EUR4.9 billion offer from United Parcel Service (UPS) as investors speculated that any eventual deal would be done at a much higher price.
TNT's shares closed at EUR10.13 in Amsterdam on Monday, up 60% on the day and 11.8% above the EUR9-a-share bid from UPS that TNT's board rejected Friday.
TNT and UPS remain in talks about a deal, and some people familiar with the matter described them as fairly advanced. However, TNT Chairman Antony Burgmans told a Dutch newspaper over the weekend that he wouldn't continue talks if he deemed hurdles to a deal insurmountable. The Dutch company rejected the initial approach because it thinks the price is too low and it is concerned it may have to make asset sales and job reductions to push a deal through.
Also pushing up TNT's shares were hopes that other suitors may enter the fray, with analysts pointing out that FedEx Corp. (FDX) has also long coveted TNT. Last year, FedEx Chief Financial Officer Alan Graf quipped at an investor conference that TNT was "too expensive," although the Dutch company's shares have fallen over 30% since it was spun out as a separate company last May.
FedEx wasn't immediately available to comment Monday.
Read Full Article from Wall Street Journal
- Posted: 2012-02-20 11:42:56
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