TNT Express rejected an unsolicited takeover offer of roughly $6.4 billion from UPS, but the Dutch delivery firm said discussions with the parcel giant are ongoing, according to reports.
UPS offered about $11.83 per share for all of TNT's issued capital, a 43 percent increase of the logistic company's closing price on Friday, according to Reuters. Activist shareholders have been pressuring TNT to reorganize its board and boost shareholder earnings.
"TNT's sale has been on the cards for some time even though it previously appeared that UPS and FedEx had rejected the idea," said John Manners-Bell of London-based Transport Intelligence. "We expect that there will an improved offer as well as potential interest from other parties. This is just the start of what will be a long and protracted bargaining process."