UPS Announces Withdrawal of Offer for TNT Express

Discussion in 'UPS Pressroom News' started by cheryl, Jan 30, 2013.

  1. cheryl

    cheryl I started this. Staff Member

    United Parcel Service, Inc. (NYSE: UPS) today announced the withdrawal of its Offer for TNT Express (NYSE Euronext: TNTE).

    As anticipated, the European Commission (EC) has issued a formal decision prohibiting the proposed acquisition of TNT Express. As a result of the prohibition by the EC, the Offer Condition relating to EU Competition Clearance will not be fulfilled and the acquisition of TNT Express by UPS will not be completed. Given this outcome, UPS and TNT Express entered a separate agreement to terminate the Merger Protocol.

    UPS proposed significant and tangible remedies designed to address the EC's concerns with the transaction concerning the competitive landscape in Europe. UPS believes that the combined company would have been transformative for the logistics industry, bringing meaningful benefits to consumers and customers around the world, while supporting much needed growth in Europe in particular.

    While UPS is disappointed in the EC's decision, the company's focus is on the continued execution of its growth strategy.
  2. Monkey Butt

    Monkey Butt Dark Prince of Double Standards Staff Member

    And the person(s), who squandered $268M by not having a provision that there would be no penalty to either company if regulatory entities did not approve the merger, continue employment in a state of nonaccountability.

    This aspect is such an obvious blunder, I would not be surprised if the Board steps in on this one.
    But then again, perhaps they were part of the decision-making apparatus that overlooked this in the Terms and Conditions.

    I had the opportunity to talk with a M&A lawyer from NY and she said this appeared to be a lack of "due diligence" and it was brought up as a learning opportunity to never allow this to happen. She deals with Financial M&A and some International so I assume she knows the area.
    She also mentioned that UPS could sue the Legal Firm that put this deal together for lack of "due diligence".

    If UPS does, we'll probably not hear about it.
    Last edited: Jan 30, 2013
  3. SignificantOwner

    SignificantOwner A Package Center Manager

    "...the company's focus is on the continued execution of its growth strategy."

    wtf is the strategy?