The Netherlands-based document and small package delivery company TNT Express said Friday it received and rejected an unsolicited acquisition bid from UPS.
Atlanta-based UPS offered 9 euros per share, TNT said, or a total of about 4.99 billion euros ($6.4 billion).
TNT said its supervisory and executive boards “carefully considered the indicative proposal and explored its rationale, merits and risks for shareholders and all other stakeholders,” before deciding to reject it.
The boards “have informed UPS accordingly but continue to be in discussions,” TNT added.
Last year, TNT was divided into two companies, one which was TNT Express, and the other Post NL which focuses on mail, parcels and e-commerce in the Netherlands, in addition to Germany, Italy and the United Kingdom. In 2006 TNT sold its logistics division to Apollo Management. The business merged with Eagle Global Logistics and now operates under the name CEVA.
UPS said that on Feb. 11, following discussions with TNT, it had “made a revised, increased and comprehensive proposal to acquire the entire issued share capital of TNT for 9 euros in cash. Discussions between the parties concerning this proposal are ongoing, although there is currently no certainty that any agreement will be reached.”
TNT is seen as a natural acquisition target for UPS because it would strengthen its European network. A fact sheet says UPS already has 43,000 of its 324,000 employees in Europe, where it serves 60 countries and territories with 451 operating facilities.
For the first nine months of 2011, TNT had revenue of 5.4 billion euros ($7.1 billion), an increase of 2.9 percent over the same period 2010. Sixty-three percent of its revenue came from Europe, Middle East and Africa. TNT is expected to announce its full-year 2011 earnings on Feb. 21. UPS had revenue for the full-year 2011 of $53.1 billion. — Chris Dupin