Deutsche Post: Not Time Pressured By UPS Talks
February 04 2009 - 5:58AM
Dow Jones News
German logistics and mailing company Deutsche Post AG (DPW.XE)
doesn't see itself as being under time pressure in its negotiations
with U.S. logistics company United Parcel Service Inc. (UPS), a
Deutsche Post spokeswoman told Dow Jones Newswires Wednesday.
UPS Chief Executive Scott Davis had said Tuesday that it has
become "very difficult" to reach a deal to fly freight for Deutsche
Post AG's DHL unit, citing DHL's scaled back U.S. plans.
It has been known for a longer time that the negotiations are
more difficult than planned and that they will therefore take
longer, Deutsche Post said.
The talks will nevertheless continue, Deutsche Post is still
interested in completing the negotiations, and the coming weeks
will show if an agreement is possible, the spokeswoman said.
She didn't mention a time period in which the negotiations could
be completed.
The potential outsourcing deal with UPS, initially announced
last May and valued at up to $10 billion over 10 years, had been
expected to be finalized by the end of 2008.
However, in November DHL announced it would no longer offer U.S.
domestic-only air and ground service as of Jan. 30. DHL still plans
to offer international shipping to and from the U.S.
Company Web site: www.dpwn.de
-By Kirsten Bienk, Dow Jones Newswires, +49 (0)69 725 508,
kirsten.bienk@dowjones.com
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