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The European Commission, which would not comment, must publish its review of the deal by Feb. 5. The Commission reviews major corporate mergers and acquisitions to ensure they do not hurt fair competition in the market. It has the power to block deals or to demand concessions, such as the sale of business parts, to safeguard market balance. Before UPS's bid for TNT Express, some analysts thought rival FedEx Corp. might make an offer for the company, but FedEx executives said in March they had no plans to do so. SNS Securities analyst Geert Steens said European regulators have signaled they would not view a takeover by FedEx or
-- less likely- DPD, a unit of France's La Poste, as problematic. But there is little guarantee either will bid for TNT in the current climate. Steens said TNT is worth around euro4 per share as an independent company, and some observers thought UPS was overpaying at
euro9.50. TNT's largest shareholder -- the former Dutch national mail company PostNL
-- will likely keep angling for a takeover as it needs to cut its debt. Shares of PostNL fell 34 percent to euro1.88. TNT's assets in Asia and Latin America are part of the reason for its attractiveness as a takeover target, but the company's Brazilian operations ran into severe problems in 2010-2011 and were still loss-making in the third quarter of 2012.
[Associated
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