UPDATE 2-Dutch state sells remaining TNT stake for $1.9 blnThe Dutch state is selling its remaining 10.9 percent stake in Dutch mail firm TNT (TNT.AS: Quote, Profile, Research) for about 1.5 billion euros ($1.9 billion), completing the privatisation of the former Dutch telecoms and post monopoly.
The finance ministry said on Tuesday it would sell 27.8 million shares to institutional investors, with Citigroup and UBS acting as lead managers and bookrunners. It will sell another 18.2 million shares to TNT, which plans to cancel them.
After the deal is completed, the government will no longer be a shareholder in TNT, which was created in 1998 through a demerger from telecoms group KPN (KPN.AS: Quote, Profile, Research). The state already sold its last stake in KPN in September.
TNT shares fell 0.65 percent to 32.17 euros by 1057 GMT, while dealers said the size of the placement was putting pressure on the shares.
“It is a large chunk to place. The stock is almost fully valued close to our target price, so I think the market is going to have a difficult time digesting that block,” a dealer said.
Dealers said the placing was in a price range of 32.2 euros to 32.3 euros.
TNT has been the subject of repeated takeover speculation over the past year. Analysts say rivals UPS (UPS.N: Quote, Profile, Research) or FedEx (FDX.N: Quote, Profile, Research) would gain a stronger foothold in Europe if they were to buy TNT’s European express delivery business.
