United Parcel Service Inc is in talks to acquire Dutch delivery company TNT Express NV, which has already rejected a 4.9 billion euro ($6.45 billion) bid worth 42 percent more than its current market value. UPS, the world's largest package delivery company, has long been rumoured to have an interest in TNT, which would help it expand in Europe, especially Britain, France and Germany in addition to the Netherlands.
About two-thirds of TNT's revenue is from European customers, but it also has been steadily growing in China, Brazil and India. UPS would also be taking out a European rival that has shown a willingness to undercut competitors on price. TNT's revenue has declined as the weak global economy spurred customers to seek cheaper shipping options and some analysts said it is not big enough to compete with the world's major delivery companies. "We are open to advancing the talks, and we continue to be in discussions," TNT spokesman Ernst Moeksis said on Friday.
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