Reports are swirling that FedEx Corp. (NYSE: FDX) is considering a buyout of TNT NV, a major Dutch mail and express delivery service firm. As expected, both firms had no comment on the rumors.TNT, which was founded in the 1700s, is ranked #4 on a global basis, with about $17.3 billion in revenues. The company's platform extends from Europe to Asia to Latin America.
No doubt, this is attractive to the folks at FedEx as the deal would make it #2 in the European express delivery service market. The company indeed needs to find a way to diversify away from its dependence on the currently ailing U.S. market.
But if TNT is in play, there are likely to be other bidders the come to the table, such as United Parcel Service (NYSE: UPS). In other words, we could have a dragged out takeover battle.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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Reader Comments (Page 1 of 1)
8-28-2008 @ 6:03PM
mike said...
Why would UPS even think about TNT? unless it just wants Fedex to pay more for it.
UPS is going to be hauling DHL packages very soon, DHL and TNT are in direct compettion in Europe, it does not make sense, I am sure DHL would not want that to happen. If UPS is going to buy someone out it will be DHL and Fedex will get TNT. Maybe vise versa? and then there will be 2