Germans in £3.7 Billion Cash and Shares Deal for Exel
Posted on: Wednesday, 21 September 2005, 18:00 CDT
Sep. 19--Exel, the Marks & Spencer delivery group, has fallen to a £3.7 billion takeover from Deutsche Post in an offer the British logistics group could not refuse.
The cash-and-shares deal values Exel's stock at 1244p a share -- 900p in cash and the rest in Deutsche Post stock.
The offer is at a near-50 percent premium to where the shares were trading before news got out of the Germans' interest in early July and 24 percent more than where they were at the end of August prior to Deutsche's confirmation that it was about to bid. It is also on a chunky multiple of 26.6 times Exel's earnings last year.
The takeover -- recommended unanimously by Exel's board -- also secures the job of chief executive John Allan, who is to head an enlarged logistics division of Deutsche Post based in Bracknell, Berkshire. Allan said: "We believe this is a good deal for our managers and our people."
The deal creates a freight forwarding world leader to go alongside Deutsche's existing DHL express delivery business acquired three years ago. It is reckoned that Deutsche Post is also gearing up for a major push at the UK mail market.
One analyst said: "In a highly fragmented market where customers are increasingly global, size matters. To date, no one player has more than 5 percent of the world's logistics market, and even after this Deutsche Post and Exel will not have more than 7 percent."
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EXL, MAKSY, MKS, DPW,
Source: Evening Standard
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