UPS going private again.....

[Dfigtree]

Thank you, Channahon. I appreciate the information. And, I really liked the following Kelly-ism.

"It really hasn't been about the money. It's been about positioning our company for the future and giving us the currency for acquisitions,"

So ... It's not about the money. It's about the currency. I have a thousand dollars in my savings account. That's money! And, it's in US dollars. That's currency!

The strange thing about Kelly's statement is that UPS already was a currency before UPS went public. Didn't most of us own a few shares of UPS stock before Nov. 1999?

And, there seems to be some kind of equivalence here ,too, in that UPS could acquire a company for two pre-public offering shares (say, at $25) or 1 post-public offering share (say, initially set at $50). Same thing, except that the acquired company's shareholders have a say in UPS doings. So, 1) "A" shareholders (UPSers, UPS foundations and retirees) have 10 time the voting power of B shares (outsiders), 2) pre-IPO shareholders get a doubling of the value of their shares, 3) the value of the company remains the same and 4) UPS has a huge meaningless market capitalization.

Money vs. currency.

 

[moreluck]

"The strange thing about Kelly's statement is that UPS already was a currency before UPS went public. Didn't most of us own a few shares of UPS stock before Nov. 1999?"

Financial....the weirdness of the stock as a privately held one was that not many banks would loan $$ with UPS stock as collateral. If it wasn't on Wall Street they wouldn't even talk to you. You weren't allowed to sell it.....I repeat, you WEREN'T allowed to sell it if you were management.....bosses pressured you if you were even considering it. So, the stock, pre-IPO, wasn't much of a 'currency'.

Turns out to be a good thing that we hung on to it and because of the IPO enabled us to leave early.

 

[upsdawg]

UPS reverting back to a privitely held company??? Why------------well it would make great sense if at the same time the Teamsters Pension plans were frozen and everything went to a 401k company match---especially right before contract time.

It would get a huge buy in from management and hourly alike---get rid of the Teamster control of the pension plans---bail UPS out from having to pay into the multi-employer plans for non-UPSers pensions!!

Overnite had a 7% 401k employer match in lieu of a pension------at least one would have control of their future monies( I'm assuming that you would have some options as to how to invest---SP500---Midcaps--2035 Horizon Funds?)

 

[brownmonster]

7% of $1500 a week is only $105. UPS puts $215 towards our pension now. I want the $215 in my 401K.

 

[djbeckett]

If UPS poured money in to our 401Ks instead of the Teamster Pension Plan that could work out for the people that know how to hold on to their money, like you and me. However, on the other hand the people that do not know how to save and take loans against their 401Ks (& ending up defaulting on the loan) would end up near retirement money to support them.

But if UPS decided that they were going to make the money they put in the 401K off limits to loans some how, that could work for all of us, especially if we got a few more mutual funds to pick from in the Teamster 401K.
If UPS decided to match 14.33% of an employee's salary and put it into their 401K; that would come out to about $215/wk on a salary of $1500/wk. This would work, if the employee could not touch it until they retired!

This would not go over well at all with the Teamsters though, even if the money was going into the Teamsters UPS 401K Plan. This would kill the rest of the underfunded Teamster Pension Fund! This probably will never happen. I have friend that works for the state of Michigan and the state matches 8% of his salary and puts it into the 401K no matter if he puts any money in to the 401K or not.

Either way, we at UPS have it pretty good when you consider what the employees that work for the Detroit auto companies are going through! Thank God we still have jobs and are not taking major pay cuts!

 

[tieguy]

the concept of staying private is making more and more sense. If my memory serves me correctly we traded at a PE of around 15 when private. We were around a PE of 24 when public. At todays price we are at 18. So as our PE ratio drops the concept of going private and being able to rely on steady growth under the old system definitely starts looking attractive.

 

[Dfigtree]

the concept of staying private is making more and more sense. If my memory serves me correctly we traded at a PE of around 15 when private. We were around a PE of 24 when public. At todays price we are at 18. So as our PE ratio drops the concept of going private and being able to rely on steady growth under the old system definitely starts looking attractive.

With UPS selling below half its all time high price, the Board probably is considering the logistics of going private. That however might be the death knell for some of the current UPS employee-shareholders. They may never recover their losses.

 

[Ntoul]

Why not? Its the latest trend since Sarbanes-Oxley passed. There has been several in the past couple weeks (Texas Utilities @ ~$40B)
With ~$80B market cap for UPS and roughly half in private hands (Class B) that would equate to ~$40B plus 25% premium being ~$50B needed to due the buyout. Possible but no likely.

you check the stock price lately!?
less than half the $80 bill now

 

[dilligaf]

you check the stock price lately!?
less than half the $80 bill now

Did you check the date of this thread? It's 2 yrs old. LOL