TNT Agrees To UPS's Raised Cash Offer
United Parcel Service will pay an increased EUR€5.2 billion (USD$6.85 billion) for Dutch peer TNT, they said on Monday, in a deal that will boost the US company's presence in Europe and create a logistics giant with EUR€45 billion in sales.
TNT said its executive and supervisory boards unanimously intended to support UPS's offer of EUR€9.50 per share, up from an initial EUR€9 per share last month.
TNT's biggest shareholder PostNL, which owns 29.8 percent, also said it supported the deal.
In a joint statement on Monday, the firms said the raised offer is a 53.7 percent premium over TNT's closing price the day before the companies announced they were in talks.
UPS, the world's largest package delivery company, has long looked at TNT as a way to help it expand in Europe, especially Britain, France and Germany as well as in the Netherlands.
The offer ends years of speculation about the future of the Dutch delivery company, which was split from the Dutch mail company PostNL and listed last year.
With falling profit and a poor outlook for 2012, TNT's management had come under intense pressure from activist shareholders.
On Friday, UPS said it was still in "constructive" talks with TNT, four weeks after the Dutch firm rejected UPS's EUR€9 per share bid, or a 42 percent premium on the day, valuing TNT at EUR€4.9 billion.