Express jumps after TNT split

Amsterdam: Shares in global delivery firm TNT Express got off to a flying start following the break-up of Dutch parent TNT, while struggling mail unit PostNL's standalone debut was less upbeat.

Overall, the split unlocked value for TNT's shareholders. Shares of the combined TNT NV had closed at €16.60 on Wednesday, and the two shares combined rose 1.6 per cent yesterday compared with that close.

But this was a tale of two stocks as TNT Express traded at €9.39 compared with a reference price set by management for the demerger of €8.61, while PostNL was at €7.50 at 1106 GMT compared with a reference price of €7.99.

"Growth is expected to take place in the express unit and there is the takeover story," said asset manager Maurice Mureau at Keijser Capital, referring to speculation that the new-look TNT Express may prove attractive.

"Post is boring, a normal dividend stock," said Mureau from Keijser, which holds both TNT express and mail shares.

TNT shareholders voted on Wednesday to split its two main businesses as separate listed firms, breaking up Europe's second-largest mail and express company after Deutsche Post.

TNT argued its two businesses had too little in common, with its postal unit grappling with declining Dutch mail volumes.