Shares in TNT Express today tumbled below €7 for the first time since UPS made its takeover offerin March amid rising uncertainty whether the €5.16 billion takeover will succeed following the
European Commission’s wide-ranging objections to the deal.Since the start of November the TNT share price has dropped steadily from the €8.19 levelfirstly to below €8 and then briefly today below €7. However, the share recovered in afternoontrading to €7.21, down only fractionally on yesterday’s closing price of €7.22.
The sharp fall in the TNT share price this month is seen by experts as a sign that investorsare increasingly nervous about the status of the UPS offer. UPS has offered €9.50 per share to TNTshareholders.
After a surprisingly deep probe into the European express market, the European Commissionissued a wide-ranging statement of objections to the deal, citing competition and pricing concerns,and leaving UPS needing to offer “substantial” remedies in order to secure approval for thetakeover. The EU’s concerns are understood to focus on the intra-European express market.
In the latest development, UPS executives will meet EU competition officials in Brussels onNovember 12 to respond to the objections and could then present proposed remedies towards the endof November, news agencies reported yesterday.
