UPS increases cash payment for TNT
UPS is increasing the amount of cash it expects to spend to pay for TNT Express, its largest-ever acquisition.
Thursday, the Sandy Springs-based company said it expects to pay for the company with $5 billion of available cash and will issue about $1.8 billion in new debt to fund the $6.77 billion purchase.
That's a $2 billion increase in the amount of cash UPS expects to spend, as compared to its original announcement. UPS announced its plan to buy the Dutch package delivery company March 19, but the deal -- which is expected to close in the third quarter -- must still be approved by European Union regulators.
UPS also approved a $5 billion stock repurchase authorization. The company announced that it will spend $1.5 billion to repurchase shares of its stock in 2012, and expects to spend the same amount in 2013.
About the Author
Arielle Kass covers Gwinnett County for The Atlanta Journal-Constitution. She started at the paper in 2010, and has covered business and local government beats around metro Atlanta. Arielle is a graduate of Emory University.
