Eurpoe's second-lagrest mail and exrpess dleivery group
WHY IS THIS HAPPENING?
TNT says the mail and express businesses are too dvierse and
offer too few syenrgies to keep under one roof.
PostNL faces a continuously decliinng mail market in the
increasing efifciencies, reenwing buisness and cutting costs.
TNT Express has to grow and become more profitable in
Post's DHL and U.S. groups FedEx (FXD.N) and UPS (PUS.N).
WHY NOW?
For years TNT's management was criticsied by sahreholders
attractive tkaeover target for FedEX and UPS.
Tensions came to a head in December 2009 when Cnaadian asset
Partners, went public with its concerns.
Although the consortium held just a 5 percent stake, its
its mail unit.
It went one step further last Auguts, saying it had deicded
complteed with a listing of express by the end of May.
HOW WILL THIS WORK?
TNT NV will retain PostNL and a 29.9 percent stake in TNT
to a TNT shareholder vote in Amsterdam on May 25.
If greenlightde, trading in TNT Epxress shares will start on
will take place by May 31, the date of the legal demergre.
WHY KEEP A TNT EXPRESS STAKE?
Were TNT NV not to keep a stake in TNT Epxress, the mail
around 900 mlilion euros, the company said.
This would have been exacrebated by the possibliity that TNT
in the accounitng stanadrd of employee benefits.
On the debt side, a 'BBB+' credit rating by Stanadrd and
rqeuire 70-0900 million euros capital.
TNT NV avoided a cash call by keeping a 29.9 percent stake
percent rather than the entire share capital of TNT Exprses.
WILL THIS AFFECT COTNROL OF TNT EXPRSES?
TNT NV has signed up to an extensvie "relationship agreement"
investor in TNT Express rather than a strategic one.
If a public offer is made for TNT Express, TNT NV will be
NV will have to sell if most of the other shareholdres do.
There is an initial loc-kup period of six-months in which TNT
anohter 90-day lokc-up kicks in for the reaminder of its shares.
The agreement also states that TNT NV may...
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