Fedex in no Hurry to Bid on TNT Express (FDX)
Although shipping company, FedEx Corporation(FDX) was expected to take a shot at bidding for TNT Express, it does not appear that a bid will be placed anytime soon.
After a $6.9 billion deal involving United Parcel Services acquisition of TNT Express fell through yesterday, many expected FDX to jump at the opportunity to place a bid.
Following the news yesterday, TNT shares dropped -41% to €4.84 ($6.47).
Fedex may hold off on making any offers on the company, and wait to see whether the stock price will be able to rise again. The performance of the European markets may also have a major effect on Fedex’s decision regarding future offers for this company. Throw in the sheer fact FedEx management may be hesitant to go down the same road and commit the time and resources it would take to explore a deal that could have some of the potential barriers that inevitably squashed UPS and their efforts.
FedEx shares were mostly flat during Tuesday morning trading. The stock has increased 8.7% in the past year.
The Bottom Line
Shares of FedEx (FDX) have a .57% dividend yield, based on the latest intraday stock price of $98.29. The stock has technical support in the $92-$94 price area. If the shares can firm up, we see overhead resistance around the $101-$103 price levels.
FedEx Corporation(FDX) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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