Dutch TNT investors hold out for higher bid

Investors in Dutch freight and delivery firm TNT Express are pressing for a higher offer from US-based United Parcel Services, driving shares up more than 50 per cent on Monday. TNT said on Friday it had rejected an offer from UPS, the world’s largest package delivery company, of 9 euros per share which valued the company at 4.9 billion euros ($6.45 billion), but that both companies were still in talks. A source close to the talks said shareholders wanted to sell their stock and hoped to get between 9.5 and 10 euros per share for a company which offers Atlanta-based UPS a bigger presence in Europe. Some TNT investors had called for a management change because of poor revenue, profits and share price performance. “Everyone is expecting a higher bid,” SNS fund manager Corne van Zeijl said on Monday, adding that rival FedEx may enter the fray. He said he expected UPS would win the prize. “FedEx can possibly come with an offer. Ten euros per share is possible. Because FedEx is smaller they can finance it less easily.” Van Zeijl said he was holding out for as much as 11 euros per share.