A shareholder proposal to expand the supervisory board of TNT Express Monday drew support from another main shareholder, sending the Dutch company's shares sharply higher amid growing frustration over its lackluster performance and strategy.

Canadian fund manager MacKenzie Cundill, which owns about 4.5% of TNT and around 10% of PostNL NV (PNL.AE), said it supported last week's initiative by Jana Partners LLC which sent a letter to TNT proposing the addition of three new three members to the supervisory board of the logistics company, including a new chairman.

Jana, which together with Canada's Alberta Investment Management Corp. (Aimco) owns a stake of just over 5% in TNT, said it might nominate those candidates to replace current members if the proposal is denied.

"Our initial take is that this is a very positive development for both TNT Express and PostNL," David Tiley, Vice-President Investments at MacKenzie Cundill told Dow Jones Newswires. Mail company PostNL retained a 29.9% stake in TNT Express after their demerger last year.

"The proposed candidates appear ideally suited to helping address the under performing asset base at TNT Express," Tiley said.

U.S.-based Jana asked current TNT Chairman Antony Burgmans to add former TNT Express Chief Executive Alan Jones to the company's supervisory board as well as former U.S. Airways Chief Executive and turn-around specialist David Siegel and Thomas Delbrook, the former head of M&A at U.S. logistics giant United Parcel Services Inc. (UPS). Jana said Jones, who improved TNT's performance when he ran the company between 1999 and 2003, would make a good chairman of the supervisory board.

TNT shares were up 7.1% at EUR6.48 around 1300 GMT on the Amsterdam bourse. PostNL's stock was up 4.1% at EUR2.72.

"As a policy we never elaborate on any communication with individual shareholders," a TNT spokesman said in an emailed statement. In its response to Jana, Burgmans said the board would consider the firm's suggestions.

Jana's move follows growing shareholder concern about TNT Express' future after last year's demerger. Since the split in May 2011, the company's operational performance has deteriorated. TNT Express' shares have fallen over 30% since. PostNL's have fallen 65%.

"We detect growing shareholder pressure for improved financial performance or a radical change of strategy," said Roger Elliott, analyst at Citigroup.

"We believe TNT Express is an attractive long-term asset and one that is well placed to participate in any global consolidation but we expect calls for prompt action on short-term issues to be heeded," Citi's Elliot said in a research note.

Shareholders over the years have asked the company to consider its strategic options including the possible sale of the business after speculation surrounding takeover approaches made to TNT Express' board. Profit warnings last year have further alienated management from shareholders. Jana and Mackenzie have previously called for the replacement of Chief executive Marie Christine Lombard.

The names of Fedex Corp. and United Parcel Service Inc., TNT Express' bigger U.S. rivals, have surfaced regularly as possible buyers of the business. On a standalone basis, analysts value TNT Express at up to EUR5 billion, rising to EUR7.5 billion if rival bidders were to compete for the company.

TNT Express cut its full-year earnings guidance in early October for the third time in 2011. It reported a 64% drop in third-quarter net profit to EUR5 million despite an uptick in sales.

- By Robin van Daalen; Dow Jones Newswires; +31 20 571 52 01; robin.vandaalen@dowjones.com

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