Will European Regulators Approve FedEx Acquisition Of TNT Express?

FedEx

shares are trading higher by $4.48 at $171.15 in Tuesday's session. That is the good news for shareholders, but the bad news is that the issue has retreated sharply off its premarket high ($176.39). The catalyst for the rally of the blue was the announcement by the company that is was acquiring TNT Express (Netherlands-based courier company). The move is aimed to expand the companies portfolio of international transportation solutions and to keep pace with continuing growth of global e-commerce. FedEx, which had been wallowing at the $165 level and on the verge of a major technical breakdown, took flight off the announcement sprinting to $176.39 before profit takers flooded the issue. By the opening of the regular session it had retreated the $173 level and after a brief pop to $173.84 it has been straight down. At this time, is has found some intraday support at $171.07, but has not been able to distance itself from that level. Perhaps investors are worried that the deal may be denied by European regulators. After all, the takeover comes less than two years after a bid for the company by United Parcel Service

was blocked.