FedEx in talks to buy Dutch rival TNT
07-12-2008, 11:59 AM
#21
Gets Weekends Off
Joined APC: Apr 2006
Position: MD-11 Captain
Posts: 4,304
07-12-2008, 12:17 PM
#22
Gets Weekends Off
Joined APC: May 2006
Position: I'm On a Boat
Posts: 218
do you actually think we'd fly those those airplanes?
don't you think it will be something along the lines of Morningstar in Canada and Who Flung Doo Airlines or whoever they are carrying our frieght intra-China?
Seems like a similar setup, or can someone enlighten us regarding just how FDX ALPA will hold management's feet to the fire in regard to scope?
And yes, this explains the sudden reversal of the Paris Bus base plans.
I see even more stagnation in the future.
don't you think it will be something along the lines of Morningstar in Canada and Who Flung Doo Airlines or whoever they are carrying our frieght intra-China?
Seems like a similar setup, or can someone enlighten us regarding just how FDX ALPA will hold management's feet to the fire in regard to scope?
And yes, this explains the sudden reversal of the Paris Bus base plans.
I see even more stagnation in the future.
07-12-2008, 01:02 PM
#23
Registered User
Joined APC: Apr 2006
Position: Capt: Lav Truck
Posts: 288
do you actually think we'd fly those those airplanes?
don't you think it will be something along the lines of Morningstar in Canada and Who Flung Doo Airlines or whoever they are carrying our frieght intra-China?
Seems like a similar setup, or can someone enlighten us regarding just how FDX ALPA will hold management's feet to the fire in regard to scope?
And yes, this explains the sudden reversal of the Paris Bus base plans.
I see even more stagnation in the future.
don't you think it will be something along the lines of Morningstar in Canada and Who Flung Doo Airlines or whoever they are carrying our frieght intra-China?
Seems like a similar setup, or can someone enlighten us regarding just how FDX ALPA will hold management's feet to the fire in regard to scope?
And yes, this explains the sudden reversal of the Paris Bus base plans.
I see even more stagnation in the future.
07-12-2008, 01:56 PM
#24
Retired Doug herder
Joined APC: Mar 2005
Position: Former DC8 73 Capt DHLAirways/Astar. Retired
Posts: 424
Not raining on your parade here, but there isn't a legal way to integrate a European air carrier with a US one. If it could be done, DHL would have done it long ago. I think the gent that was talking about the Chinese operators has it pegged. There is about to be a huge consolidation here in freight dog world. And it's not going to be a good thing for anyone who drives the bus.
07-12-2008, 03:00 PM
#25
Gets Weekends Off
Joined APC: Sep 2007
Posts: 337
We're flying all we can legally fly in Europe with volumes factored in.
07-12-2008, 07:09 PM
#29
Gets Weekends Off
Joined APC: May 2006
Posts: 997
Looks like UPS might be interested as well...
Bloomberg.com: Worldwide
FedEx May Buy Dutch TNT to Add Europe Parcel Delivery, FT Says
By Jeroen Molenaar and Sarah Thompson
July 12 (Bloomberg) -- FedEx Corp., the second-largest U.S. package-shipping company, is in preliminary talks to take over TNT NV, the Financial Times reported. Buying the Dutch operator would make FedEx the No. 2 express-delivery service in Europe.
Rising fuel costs and an economic decline revived merger discussion between FedEx and TNT, the U.K. newspaper said today, without citing anyone. Pieter Schaffels, a spokesman for TNT, and Jess Bunn of FedEx both declined to comment when contacted by telephone and e-mail today.
A buyout ``makes sense,'' said Philip Scholte, an analyst at Rabo Securities in Amsterdam. ``You just link the two networks together.''
Memphis, Tennessee-based FedEx last month posted its first quarterly loss in 11 years and said earnings will fall, as jet fuel prices increased and the slowing U.S. economy prompted customers to seek cheaper ways of shipping goods.
An acquisition of TNT, which said in June it coped with rising fuel prices by transporting as much as possible by road, would boost FedEx's parcel-delivery sales outside the U.S. by 144 percent to $17.6 billion, more than half its total revenue.
FedEx's market capitalization was $22.9 billion at Friday's closing price of $73.94, after the stock had fallen more than 17 percent this year. TNT, valued at 7.02 billion euros ($11.2 billion), has slid almost 35 percent, to 18.51 euros.
``If TNT stock stays as low as this, it's not surprising these kind of rumors hit the market,'' said Scholte, who has a ``buy'' recommendation on the company and a share price estimate of 36 euros. He said investors probably wouldn't accept a takeover premium of 30 percent, which he called a typical offer, adding that the shares may fetch as much as 40 euros apiece.
Competition
An acquisition of TNT would increase competition with DHL Express, a unit of Deutsche Post AG, Europe's biggest mail carrier. In May Deutsche Post teamed up with United Parcel Service Inc., which ranks first in the U.S. package delivery business, to help restore earnings at the unprofitable DHL division.
UPS, which on June 24 reduced its second-quarter profit forecast on rising fuel costs and a cooling U.S. economy, may also be interested in buying TNT, Scholte said.
Hoofddorp-based TNT, also the Netherlands' largest mail service, sold its logistics and freight-management businesses to expand mail and parcel-delivery services in Europe, Latin America and Asia. The company, which traces its origins to the 1752 founding of the Dutch postal service, gets 2 to 3 percent of its 10.9 billion-euro ($17.3 billion) sales from the U.S. each year.
Last year, FedEx had sales of $37.95 billion, boosted by shipping goods such as music CD's and computer games from Sony Corp., the world's second-largest consumer-electronics maker, and the colorful plastic clogs with holes made by Crocs Inc..
To contact the reporters on this story: Sarah Thompson in London at [email protected]; To contact the reporter on this story: Jeroen Molenaar in Amsterdam [email protected]
Last Updated: July 12, 2008 09:24 EDT
Bloomberg.com: Worldwide
FedEx May Buy Dutch TNT to Add Europe Parcel Delivery, FT Says
By Jeroen Molenaar and Sarah Thompson
July 12 (Bloomberg) -- FedEx Corp., the second-largest U.S. package-shipping company, is in preliminary talks to take over TNT NV, the Financial Times reported. Buying the Dutch operator would make FedEx the No. 2 express-delivery service in Europe.
Rising fuel costs and an economic decline revived merger discussion between FedEx and TNT, the U.K. newspaper said today, without citing anyone. Pieter Schaffels, a spokesman for TNT, and Jess Bunn of FedEx both declined to comment when contacted by telephone and e-mail today.
A buyout ``makes sense,'' said Philip Scholte, an analyst at Rabo Securities in Amsterdam. ``You just link the two networks together.''
Memphis, Tennessee-based FedEx last month posted its first quarterly loss in 11 years and said earnings will fall, as jet fuel prices increased and the slowing U.S. economy prompted customers to seek cheaper ways of shipping goods.
An acquisition of TNT, which said in June it coped with rising fuel prices by transporting as much as possible by road, would boost FedEx's parcel-delivery sales outside the U.S. by 144 percent to $17.6 billion, more than half its total revenue.
FedEx's market capitalization was $22.9 billion at Friday's closing price of $73.94, after the stock had fallen more than 17 percent this year. TNT, valued at 7.02 billion euros ($11.2 billion), has slid almost 35 percent, to 18.51 euros.
``If TNT stock stays as low as this, it's not surprising these kind of rumors hit the market,'' said Scholte, who has a ``buy'' recommendation on the company and a share price estimate of 36 euros. He said investors probably wouldn't accept a takeover premium of 30 percent, which he called a typical offer, adding that the shares may fetch as much as 40 euros apiece.
Competition
An acquisition of TNT would increase competition with DHL Express, a unit of Deutsche Post AG, Europe's biggest mail carrier. In May Deutsche Post teamed up with United Parcel Service Inc., which ranks first in the U.S. package delivery business, to help restore earnings at the unprofitable DHL division.
UPS, which on June 24 reduced its second-quarter profit forecast on rising fuel costs and a cooling U.S. economy, may also be interested in buying TNT, Scholte said.
Hoofddorp-based TNT, also the Netherlands' largest mail service, sold its logistics and freight-management businesses to expand mail and parcel-delivery services in Europe, Latin America and Asia. The company, which traces its origins to the 1752 founding of the Dutch postal service, gets 2 to 3 percent of its 10.9 billion-euro ($17.3 billion) sales from the U.S. each year.
Last year, FedEx had sales of $37.95 billion, boosted by shipping goods such as music CD's and computer games from Sony Corp., the world's second-largest consumer-electronics maker, and the colorful plastic clogs with holes made by Crocs Inc..
To contact the reporters on this story: Sarah Thompson in London at [email protected]; To contact the reporter on this story: Jeroen Molenaar in Amsterdam [email protected]
Last Updated: July 12, 2008 09:24 EDT
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