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UPS shrinks share buyback plans, boosts cash portion of TNT offer
ATLANTA (AP) ' UPS says it will spend less money on share buybacks and instead use more cash to buy Dutch rival TNT Express.
The new plan from UPS will shrink the amount it needs to borrow to buy TNT by $2 billion. UPS now says it will spend $5 billion in cash on the $6.8 billion deal that will make it the biggest shipper in Europe. It's the biggest acquisition UPS has ever made.
The borrowing needed for the deal prompted credit rating agencies to say they might downgrade UPS debt.
UPS says it will now buy back up to $5 billion in shares, including $1.5 billion each this year and next year. In September it had said it would buy back at least $8 billion in shares through 2014.