FedEx to Formally Launch $4.8 Billion Offer for TNT Express on Monday
August 21 2015 - 3:22AM
Dow Jones News
By Ellen Proper
AMSTERDAM--FedEx Corp. (FDX) said Friday it will formally launch
its $4.8 billion offer for Dutch rival TNT Express NV (TNTE.AE)
next week and that it is optimistic the deal will get the necessary
regulatory approval.
FedEx said its offer of EUR8 a share will be launched Monday and
expire on Oct. 30, and will be subject to a minimum acceptance
level of 95% of TNT shares. The threshold can be lowered to 80% if
TNT's shareholders approve the takeover at a shareholders meeting
on Oct. 5.
FedEx last month hit a bump with the planned acquisition after
the European Commission said it opened an in-depth investigation
into the transaction, amid concerns about the combined group's
dominance in the international delivery of small packages in some
European markets.
FedEx, however, said the process of obtaining regulatory
approval remains on track. Responding to the commission's concerns,
FedEx said that the deal "presents a pro-competitive proposition
for the provision of small package delivery services within and
outside Europe."
FedEx also said that TNT's chief executive, Tex Gunning, would
resign once the deal is completed. Mr. Gunning will continue to
serve on the integration committee of the merged company for a
period of six months.
Write to Ellen Proper at ellen.proper@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
August 21, 2015 03:07 ET (07:07 GMT)
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