UPS dismisses TNT bid as Dutch firm's shares fall

A senior executive of top global logistics firm United Parcel Service yesterday dismissed talk of a $15 billion (Dh52.5bn) takeover bid for Dutch rival TNT as a "rumour", saying an acquisition would devalue its shares.

The comments pushed TNT shares down by nearly 10 per cent yesterday, erasing earlier gains posted after a source familiar with the talks told said. The US company was in the early stage of discussions with Europe's number two mail and logistics group.

"That rumour again?" Dan Brutto, president of the company's international business said.

"I look at that (TNT share price) and said, 'someone says we're going to buy something that devalues our shares too at the same time'," he said, adding however that acquisitions were not something he oversaw directly. "But we always look at different things and try to fit (them) into the puzzle."

He said UPS hoped to make some Chinese acquisitions.

"US consumers are not buying, but I think the opportunity for us globally is business that never touches US shores," said Brutto, who was in Beijing to attend the 2008 Olympics.

Earlier yesterday, shares in Europe's number two mail and logistics company gained more than 6 per cent.