Bid confirmation boosts Exel

By ROBERT LEA
Updated:

 

SHARES in FTSE 100 logistics giant Exel soared almost 15% today after a long-awaited takeover approach finally arrived from Deutsche Post.

The German mail giant, best-known in the UK for its DHL express courier services, is believed to have been stalking Exel for months.

After Exel said it had entered into 'preliminary discussions' with the Germans, its shares shot up 147p to 1152p, valuing the group at nearly £3.4bn.

With Deutsche Post finally breaking cover, share punters were today betting on an auction breaking out for Exel. American giant UPS has long been reckoned to be a potential buyer of Exel. Traders also highlighted another US group, Federal Express, and Dutch postal giant TNT as possible counterbidders. Swiss logistics group Kühne+Nagel today ruled itself out.

Traders have often mooted their frustration at the company's unwillingness to comment on takeover speculation despite regular spikes in the share price. One source close to Exel's board said: 'The management certainly has not been touting the business as up for sale.'

Deutsche Post's move is the second in as many days for a British blue-chip by a foreign raider bid-proof in its own market. Saint-Gobain of France yesterday launched a £3.7bn bid for BPB. Deutsche Post is controlled by the German government.

Exel shares are at a five-year high, having doubled in value since 2003.

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