Shares in package delivery company TNT Express NV were knocked as much as 50 per cent lower Monday on reports that United Parcel Service Inc (UPS) has ditched its euro 5.2 billion ($6.9 billion) takeover of the struggling Dutch company, citing objections from European regulators. Though TNT will receive a euro 200 million ($265.5 million) break fee, it faces an uncertain future on its own.
The drop in share price wiped off nearly 2 billion euro from its market value. At one point, the shares had plunged by 50 per cent before recovering somewhat to trade 42 per cent lower at euro 4.762.
In March, UPS had offered to buy TNT, Europe's second-largest delivery company, to better compete with Europe's largest, Deutsche Post's DHL. However, in October, regulators said that the deal would hurt competition by reducing the number of companies in the sector.
In response, UPS offered to sell parts of the company's small package operations and airline assets. But after meeting with regulators January 11, UPS told TNT it saw no prospect of the deal being approved --and it wasn't interested in further concessions.
RECOMMENDED FOR YOU
POPULAR