UPS shrinks buyback plan to use cash for TNT offer

[cheryl]

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.

[beentheredonethat]

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.