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Euro-Dollar Trades Help UPS Cover TNT Breakup Fee
Profit on trades related to proposed purchase offset the fee UPS paid when regulators blocked the deal.
United Parcel Service Inc. profited enough from euro-dollar trades related to its proposed purchase of TNT Express NV to make up for the breakup fee incurred when regulators blocked the deal.
UPS converted dollars into euros throughout 2012 in anticipation of using cash for half of the 5.16 billion-euro ($6.6 billion) deal, with a surge in the last half when the euro was “quite low, in the $1.20s,” Chief Financial Officer Kurt Kuehn said yesterday in a phone interview.
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