TNT Express NV, European second biggest express delivery service company is facing a pressure to agree the acquisition offered by United Parcel Service (UPS). TNT Express refused UPS’ acquisition worth € 4,89 billion in the last February 17th.
According to a source knowing the negotiation, TNT wanted a higher offer, more than €9 per share. Besides, TNT’s directors also unpleased with the requirements attached to the offer, that it is possible that a divestation needed to get regulator’s agreement, and the possibility of employee reduction.
TNT Express’ Head of Supervisory Board, Anthony Burgmans said that related to monopoly rules, negotiation between two companies is still going on, including the employee reduction issue. Peggy Gardner, UPS’ spokesperson said that UPS’ offer has been revised and the value is increase after last week’s discussion.
Overlapping operation in Europe can cause a synergy to UPS up to €400 million. Andre Mulder, Kepler’s analist in Amsterdam said that the offer is a once in a life time chance. From four global player, TNT were the smallest. UPS offer reached 1,04 times TNT’s total assets, also 42% higher than TNT’s market value at the end of last week.
TNT recorder a net loss of €97 million in the first nine month last year, compare to previous year which still profited €62 million. TNT is now have saving programs to reduce indirect costs. TNT Wxpress was separated from Netherland’s post operator which now called Post NL since last May. Post NL still have 29,9% share on TNT.
UPS keep enlarging its market through delivery service company acquisitions. Last week UPS has finished acquired Kiala, Brussels’ delivery service company to increase its operation in Belgium, France, Netherland, Spain, and Luxemburg. UPS also done few small acquisitions the last couple of years.
According to Transport Intelligence, UPS has 7,7% market share throughout Europe in 2010. FedEx has 3,3% and TNT Express has 9,6% market share. DHL Deutsche Post AG’s business unit has the biggest European express delivery service market share in 17,6%. Cathy Roberson, Transport Intelligence’s analist said that from global perpective she thinks that TNT cannot have business by itself, it needs to be bought.

Lamborghini SpA predicted, China’s luxury cars market will slowed. Lamborghini only targeted 20%-30% growth on delivery to China this year, less than half of 2011 sales rate.
Christian Mastro, Lamborghini Asia’s General Manager said that there are economic uncertainties made the customers prefer to wait. The number of customer willing to spend money for luxurious cars is more limited.
Aventadors is one of Lamborghini’s pledge cars. Its price reached USS1 million. China’s consumers have to wait for 18 months before they get their Aventadors.
Lamborghini plans to produce 900 Aventadors for global market this year, and sell 80% of it in China. Last year, this sport cars producer sold 342 units in China which then took over US’s position as as the biggest market. This year, this Italian producer will add six more dealers in Xi’an, Nanjing, Changsha and Shenyang.

Lloyds Bank took back 10 senior bankers and ex bankers’ bonus worth £2 millions. The cause was the payment protection insurance (PPI)’s sales mistake case. BBC reported, four of them were in the board of directors.
The bonus retraction was first happened in England’s bank. PPI scandal forced Lloyds to pay £3,2 billion last year. PPI usually sold along with loans, to cover payments, if the debitor got sick or loose their job.
England’s consumer association labelled the insurance as an unuseful product in 2008. The statement followed by compensation claims from PPI’s buyers. April last year, banking industry lost in court in its effort to stop the compensation request from consumers.
Few weeks later, Lloyds announced £3,2 billion back up for payment possibilities. The bonus retraction happened after the politician and Financial Service Authority’s pressure. The rules appear after the 2008 crisis.

The discussion about the merger between Glencore International Plc and Xstrata Plc is rolling. These two companies engage in mining industry have entered the calculation of stock value.
As quoted by Financial Times, Xstrata will receive 2,8 Glencore’s stock for each of its stock. The ratio is 8% higher than Xstrata’s stock value before the merger issue emerges. This value is also above market prediction.
Indeed, since the news came out, Xstrata’s stock price has increased 11% since Wednesday (1/2). In last Friday’s closing, each Xstrata’s stock price is equal to 2,66 times Glencore’s.
John Robinson, the Chairman of Global Mining Investments, a capital company owned by BlackRock said that after the price volatility since the merger plan announced, an 8% premium will not influence much. The company has both Glencore and Xstrata’s share. According to Robinson, the value has fit the synergy value between two sides, but the value can still changed.
Suisse Credit Analysts predicted, the synergy will cost US$ 468 million. The number is only 5% of both companies’ net profit combination in 2012.
Glencore has already had 34% Xstrata’s share. The merger will be done by calculating each company’s stock value or merger of equals. Along with Xstrata which is various types of metal and mineral miner, Glencore has the potential to be the world’s biggest player in comodities trading. Xstrata can also fulfill its desire to work on iron ore market.
The new company with possibility of US$ 88 billion assets will become the world’s biggest thermal and zinc coal exporter, and the third biggest copper miner.
A Reuters’ resource said that the conversation between both sides has been done since before Christmas last year. Both also have agreed the top management position in the new company. While Xstrata will seat the majority board of directors, which is the position of chairman, head executive and financial director. Robinson welcomed the management’s composition plans, he said that Xstrata is an efficient company.
All these times, Xstrata has creates a good growth. The company will increase 50% of its production in 2014, and provide US$ 19,5 billion budget in two years.

United States’ plane producer, Boeing Co will soon have an inspection to 787 Dreamliners planes, after finding a delamination potential on the airframe. Boeing Co’s spokes person, Scott Lefeber said that the process happened due to manufacturing failure in structuring thde plane’s body. The condition has crearly known and service will run immediately.
Even so, the only Dreamliners operator, All Nippon Airways Co is still using the planes. Until March 2013, the Japanese airline will still receive another 15 planes. The delamination has nothing to do with the plane design or safety issues, but this is about a production need to be fixed.
Dreamliner which is a jet plane, indeed have the risk of experiencing an exfoliation, because it made from the mix of carbon and fiber. Most planes are made of aluminium. As quoted by Seattle Times, Boeing has finished the assembly of 50 Dreamliners units.