United Parcel Service, Inc. (NYSE: UPS) has confirmed some news that the market was expecting. The company is responding to a rejected buyout offer of close to $6 billion which it made to TNT Express NV.
The company responded that it made a revised offer after discussions with TNT management on 11 February, 2012 and it increased its offer to acquire the entire issued share capital of TNT for 9 Euros per share in cash. UPS further noted that “discussions between the parties concerning this proposal are ongoing…” but left room that no such deal may be reached and that it would update the situation when appropriate.
UPS is down only about 1.3% at $75.77 and its market capitalization is $73 billion for its equity. Keep in mind that its 52-week range is $60.75 to $77.55 and the stock was north of $77.00 earlier this morning. If a company is going to make an acquisition offer, it is better to do it at the top of the 52-week range rather than when it is on a soft spot.
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