UPS-TNT Deal Stirs Investor Doubt in EU Approval Struggle

Discussion in 'The Latest UPS Headlines' started by cheryl, Nov 12, 2012.

  1. cheryl

    cheryl I started this. Staff Member

    UPS-TNT Deal Stirs Investor Doubt in EU Approval Struggle - Bloomberg

    UPS is seeking to avoid concessions that would hobble its plan to double operations in Europe by buying Hoofddorp, Netherlands-based TNT. Since announcing the purchase March 19, Atlanta-based UPS has twice pushed back the target to complete the biggest deal in its 105-year history as the regulatory review continues.

    “It’s going to be a lot more challenging than UPS thought,” said James Corridore, an S&P Capital IQ analyst in New York. “There’s a level where it would be too much, if they had to break apart TNT or divest too much, and the synergies wouldn’t be there.”

    UPS will press its case today at a hearing with European Commission officials in Brussels. The company now projects a closing in early 2013, after setting an initial target for the third quarter and then the end of this year.