Deal would make Danzas largest air carrier
FRANKFURT, Germany (Nov. 17, 1999) — Deutsche Post AG said Monday that it would offer $33 US per share to buy U.S. air-freight firm Air Express International in a deal valued at $1.14 billion.
Deutsche Post plans to integrate all AEI activities into the Danzas group, its Switzerland-based freight & logistics division, under the name Danzas-AEI. Combined, revenues are expected to reach $29.3 billion.
The deal strengthens Deutsche PostÕs position in North America and makes Danzas the world’s leading provider of air cargo services. It also positions the German government-owned group for its privatization next fall.
Yesterday, the German association of international express and courier services (BIEK) and the country’s freight forwarders association (BSL) raised nagging concerns about how the deal would be financed. The European Commission is investigating whether Deutsche Post has been using letter-monopoly profits to undercut rivals and pay for it’s huge acquisition spree.
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