UPS said on Friday its executives had never expressed an interest in buying Dutch mail and logistics company TNT, after the German newspaper report in “Die Welt” sent TNT’s shares soaring. United Parcel Service Inc. (UPS), the world’s largest package carrier, said senior executives had met a group of European reporters at its Atlanta headquarters on Wednesday and questions were asked about the company’s acquisition strategy.”At no time during these discussions did UPS executives specifically discuss individual companies as acquisition targets,” UPS said in a statement.

German newspaper Die Welt had said UPS Senior Vice President Kurt Kuehn, when asked about a possible interest in TNT, replied: “It is a possibility. We are looking at it.”

TNT shares, which had risen as much as 4.5 percent on the newspaper’s report, pared gains after the UPS statement, but were still up 3.0 percent at 20.61 euros by 1408 GMT> The shares closes at Friday at 20,67. Still a 3.4% positive change.

While press reports have sought to link UPS to a number of European companies, including Exel and TNT, UPS continues to follow its strict policy of never discussing rumors or speculation about specific merger or acquisition targets.

“Die Welt” also quoted UPS Chief Executive Michael Eskew as saying the company had considered acquisitions in the mail business and that he did not exclude the possibility of hostile takeovers.

Analysts have said UPS and TNT would make a good fit but pointed to obstacles, including a 10-percent stake held by the Dutch government, which also has a golden share.

The Dutch mail group declined to comment.

TNT has a leading position in the European express market and is the world’s second biggest contract logistics provider after Exel, the target of an agreed 3.7 billion-pound ($6.5-billion) takeover bid by Deutsche Post.

Source: Reuters

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