UPS Said to Reach Deal to Buy TNT Express to Grow in Europe

Discussion in 'The Latest UPS Headlines' started by cheryl, Mar 18, 2012.

  1. cheryl

    cheryl I started this. Staff Member

    UPS Said to Reach Deal to Buy TNT Express to Grow in Europe - Bloomberg

    United Parcel Service Inc. (UPS) reached an agreement to buy TNT Express NV (TNTE) after raising its offer for Europe’s second-largest express delivery company, according to two people with knowledge of the talks.

    At the range of 9.50 to 10 euros a share, the deal would value TNT at 13 to 14 times its last four quarters’ earnings before interest, taxes, depreciation and amortization, compared with a median of 10 times trailing Ebitda in nine other similar deals, according to data compiled by Bloomberg.

    “That price is a bit ahead of what the shares are trading at currently, so they seem to be getting a bit of a premium,” said Dieter Furniere, a Brussels-based KBC Securities analyst who has a hold rating on TNT. Sterling recommends buying UPS.