UPS shrinks buyback plan to use cash for TNT offer

Discussion in 'The Latest UPS Headlines' started by cheryl, May 4, 2012.

  1. cheryl

    cheryl I started this. Staff Member

    UPS shrinks buyback plan to use cash for TNT offer - Yahoo

    The new plan from UPS will cut $2 billion from what UPS needs to borrow for the deal. Its original plan to borrow $3.8 billion for the deal had prompted ratings agencies to put UPS on watch for a possible downgrade.

    UPS now plans to use $5 billion in cash plus $1.8 billion in debt for the $6.8 billion deal. Buying TNT will make UPS the biggest shipper in Europe, and it's the biggest acquisition UPS has ever made.
     
  2. beentheredonethat

    beentheredonethat Well-Known Member

    That's good news (in my opinion). We will have less debt on our books due to this acquisition. Now if UPS can hold off on the buyback a couple more years and invest that extra billion or two billion dollars per year and build some more UPS ground hubs.