Doubt over UK jobs as TNT considers Elm bid
If you've noticed an error in this article please click here to report it so we can fix it.
Drivers at TNT Logistics, Express Delivery Services and Newsfast all face uncertainty this week after TNT's Australian board directors urged shareholders to accept a 41bn bid from Dutch company KPN.
Holland's biggest telecoms and postal company valued TNT's shares at almost 50% higher than stockmarketssuggesting that it believes it can extract far bigger profits from TNT's fleets around the world.
TNT's UK marketing director Steve Doig refused to comment last week but it has been reported that TNT believes its 10,000 UK jobs are are secure.
"I think that's untrue," says United Road Transport Union spokesman Douglas Curtis. "It is a very high price to pay. The usual effect of that is that it increases the pressure for cost savings," TNT's UK operations helped earn almost half the 488.9m profits it generated in Europe alone last year, but KPN chief executive Wim Dik says the main reason for the move was to increase KPN's presence in the Asian markets.
If TNT's shareholders give the deal the goahead it will create the fourth largest logistics group in the world.