* Latest concessions are substantially improved - source
* First offer included selling warehouses, customer bases
By Foo Yun Chee
BRUSSELS, Dec 18 United Parcel Service Inc
has offered more concessions in a bid to win EU
regulatory approval for its 5.2-billion-euro ($6.8 billion) bid
for TNT Express, two people familiar with the matter said on
The latest offer came after the European Commission
indicated an earlier proposal to sell warehouses and customer
bases in about 15 countries, mainly in eastern Europe, was not
sufficient to address competition concerns.
The world No. 1 package delivery company is seeking to buy
Dutch peer and European market leader TNT to gain
access to TNT's network in the fast-growing Asian and Latin
UPS submitted its latest offer to the European Commission on
Monday, one of the sources said.
"The remedies are substantially improved," the second person
said, declining to provide details because of the sensitivity of
A UPS spokeswoman said the Atlanta-based company was working
on ways of tweaking its TNT deal to win European approval but
declined to comment on any specific actions it was
"As we move through this process, remedies can change," said
spokeswoman Peggy Gardner.
The EU antitrust authority, which will decide by Feb. 5
whether to clear or block the deal, has told UPS rivals and
customers to provide feedback on the latest concessions by
Wednesday, one of the people said.
The Commission declined to comment. TNT shares added gains
after Reuters reported the latest UPS concessions and were up 3
percent to 8.18 euros in mid-session.
UPS' earlier offer was aimed at boosting French mail group
DPD as a viable third European competitor able to offer both
road and air freight services.
The EU watchdog is concerned UPS's takeover of TNT would
result in the merged entity competing mainly with just Deutsche
Post's DHL unit in Europe. The German package
delivery company has a 15 percent share of the European market,
behind TNT's 18 percent.
UPS also competes with U.S. rival FedEx.