AMSTERDAM--Dutch mail company PostNL NV (PNL.AE) said Monday that it will reduce its stake in TNT Express (TNTE.AE) over the medium term, now that the proposed acquisition of TNT by United Parcel Service Inc (UPS) is expected to fail.

 
 

MAIN FACTS:

-PostNL, which has a 29.9% stake in TNT, said it has taken notice of the press releases issued today by UPS and TNT, that indicate that the European Commission has informed UPS and TNT that it is working on a decision to prohibit the proposed acquisition of TNT.

-Herna Verhagen, CEO of PostNL said: "The transaction between UPS and TNT Express would have maximised the value of our stake in TNT Express. If upon a formal decision of the European Commission, the acquisition of TNT Express is not pursued, we expect that we will monetise the stake over the medium term to create better value for shareholders, after we have seen stability return to TNT Express."

-"As a major shareholder of TNT Express, PostNL will fill in this role in the best interests of PostNL and our shareholders. In the meantime, we will continue our daily business as planned, including the reorganisation in Mail Netherlands and the rollout of the new logistics infrastructure in Parcels."

- Write to Amsterdam Bureau at amsterdam@dowjones.com

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