UPS Withdrew $6.9 billion TNT Offer, Harry Winston Sells Watch Unit

Mukesh Buch
14 Jan, 2013
New York City

Harry Winston agreed to sell its watch division to Swatch Group for $750 million. PPG Ind said fourth quarter net climbed 5%. UPS withdrew its $6.9 billion offer for TNT Express. V.F. Corp and Altamont offered to acquire Australia based Billabong for $555 million.

[R]10:00 AM New York – Harry Winston agreed to sell its watch division to Swatch Group for $750 million. PPG Ind said fourth quarter net climbed 5%. UPS withdrew its $6.9 billion offer for TNT Express. V.F. Corp and Altamont offered to acquire Australia based Billabong for $555 million.[/R]

Harry Winston Diamond Corporation ((HWD)) climbed 9.5% or $1.35 to $15.81 after the Canada based luxury watch retailer agreed to sell its luxury brand diamond jewelry and watch division to The Swatch Group Ltd. for $750 million plus assumption $250 million in cash and net debt.

PPG Industries, Inc. ((PPG)) slipped 1.1% or $1.57 to $140.57 after the decorative coatings supplier reported net sales in the fourth quarter ending in October grew 4% to $3.65 billion from $3.52 billion in the same period of last year. Net income in the quarter climbed 5% to $227 million or $1.46 per diluted share compared to $216 million or $1.39 a share a year ago.

Tiffany & Co. ((TIF)) gained 59 cents to $60.87 after the jewelry retailer estimated earnings for the year ending January to be at the lower end of its previous forecast range between $3.20 and $3.40 per share.

The jewelry retailer said net sales for the two-month period ending December grew 4% to $992 million.

United Parcel Service, Inc. ((UPS)) increased 1.7% or $1.39 to $79.31 after the courier services provider abandoned its €5.2 billion or $6.9 billion takeover of Netherlands based express delivery company, TNT Express.

Competition authorities at the European Commission informed the two companies that its proposed asset sales did not go far enough and may harm competition and will block the merger proposal.

UPS will pay a termination fee of 200 million euros to TNT and will withdraw the offer. In March 2012, UPS has offered to purchase TNT.

Shares of TNT Express declined 49% to 4.90 euros in early trading Amsterdam exchange.

V.F. Corporation ((VFC)) gained 1% or $1.55 to $150.55 after the apparel maker and Altamont Capital Partners offered to acquire Australian surf-wear maker Billabong International Ltd. for A$1.10 a share in cash or $555.5 million.

Billabong agreed to allow V.F. Corp and Altamont to conduct due diligence to evaluate Billabong’s business.

Verint Systems Inc. ((VRNT)) surged 7.7% or $2.45 to $34 on speculation that the security intelligence software maker may be acquired by Israel based analytical security solution provider Nice Systems Ltd.