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The Brink's Company Message Board

  • t2ravel t2ravel Nov 7, 2005 11:48 AM Flag

    Deutsche Bahn to buy BAX Global

    UPDATE 2-D.Bahn to pay up to 1 bln euros for BAX - sources
    Mon Nov 7, 2005 10:40 AM ET
    (Adds Brink's share rise)
    By Markus Wacket

    BERLIN, Nov 7 (Reuters) - Germany's national rail operator, Deutsche Bahn [DBN.UL], plans to buy U.S. logistics firm BAX Global, a unit of Brink's Co. (BCO.N: Quote, Profile, Research) , for up to 1 billion euros ($1.2 billion), sources at Deutsche Bahn said on Monday. "The price is to be between 800 million and 1 billion euros," a source familiar with the negotiations told Reuters. The figures were confirmed by another source at Deutsche Bahn.

    Deutsche Bahn declined to comment officially.

    The report pushed shares in Brink's up $4.11, or 9.7 percent, to a $46.61.

    Buying BAX will help Deutsche Bahn increase its competitiveness in the U.S. market and strengthen its logistics arm, Schenker.

    BAX would boost Schenker's air and sea transport capabilities from the United States to Europe and Asia, thereby increasing pressure on rivals such as Deutsche Post (DPWGn.DE: Quote, Profile, Research) and Kuehne & Nagel (KNIN.S: Quote, Profile, Research) .

    With around 12,000 employees, BAX Global had a turnover of around 2 billion euros in 2004.

    The purchase is to be concluded at a special meeting of Deutsche Bahn's supervisory board on Saturday, the sources said.

    The Wall Street Journal reported in June that Brink's had put BAX, which is based in Irvine, Calif., up for sale. The paper said at the time that the unit could fetch roughly $500 million based on historic price multiples for logistics and trucking companies.

    Wish I had bought BCO last week!!

26.98+0.04(+0.15%)Jul 30 4:06 PMEDT

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