Atlanta-based United Parcel Service (UPS) said it remains in “constructive discussions” with The Netherlands’ TNT Express concerning the U.S. firm’s plans for the takeover of the Dutch package delivery company.

“UPS remains in constructive discussions with TNT Express N.V. regarding a potential transaction to acquire the entire issued share capital of TNT Express,” UPS said in a statement on March 16.

UPS, the world’s biggest package delivery service, said it still intends to submit a request for approval of its offer document to The Netherlands Authority for the Financial Markets (AFM) within 12 weeks from its initial announcement of February 17, 2012.

Further announcements will be made as appropriate, the company added.

TNT Express earlier turned down a EUR4.9 billion takeover bid by UPS, but both parties said talks were ongoing.

UPS tendered the bid as some shareholders of TNT Express, Europe’s second largest package delivery company, urged for a company-board shakeup and increase in shareholder value after the European group suffered falling revenues as the global economic slowdown prompted customers to choose lower-cost shipping over air transport.

The acquisition of TNT Express will open up the region’s market to UPS and boost the latter’s presence in Europe over rival FedEx.

 

Photo: TNT Express

 

 

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