Click Here to Go Directly to the Story
Register/Subscribe
Home

 
 


U.S. EDITION
Full Table of Contents
 Cover Story
Up Front
Readers Report
Corrections & Clarifications
Books
Technology & You
Economic Viewpoint
Economic Trends
Industry Insider
Business Outlook

News: Analysis & Commentary
In Business This Week
Washington Outlook
Sports Business
Marketing
Economics
The Corporation
People
Developments to Watch
Social Issues

Finance
Industrial Management
BusinessWeek Investor
The Barker Portfolio
Inside Wall Street
Figures of the Week
Editorials

E.BIZ SUPPLEMENT July 9 Table of Contents

INTERNATIONAL EDITIONS
International -- Int'l Cover Story
International -- Letter From Denmark
International -- Readers Report
International -- Corrections & Clarifications
International -- Asian Business
International -- European Business
International -- Finance
International -- Int'l Figures of the Week
International -- Editorials


JULY 9, 2001

INSIDE WALL STREET

DHL Could Help Airborne Take Off

 
By Gene G. Marcial
Gene Marcial

  STORY TOOLS
Printer-Friendly Version
E-Mail This Story

Related Items Chart: Not Streaking Ahead
INSIDE WALL STREET

 Callaway in Play?

Good Medicine at Avant

DHL Could Help Airborne Take Off
Some say Airborne (ABF ) is the third horse in a two-horse race between United Parcel Service and FedEx. Indeed, as No. 3 in the express delivery business, Airborne is way behind: In 2000, Airborne's sales were $3.3 billion, vs. $29.7 billion at UPS and $18.2 billion at FedEx. But that could change: Air-cargo sources whisper that Germany's DHL Worldwide Express has held informal talks with Airborne about acquiring a minority stake. In May, DHL said it intended to create a full U.S. ground-parcel unit and was awaiting a go-ahead from Uncle Sam. Airborne has an integrated air-and-ground network for door-to-door delivery of small packages and documents. Its ground network includes nine regional hubs, 700 trucks, and 100 tractors.

Despite Airborne's also-ran status, it should not be counted out, says Peter Jacobs of Wells Fargo Van Kasper. In overnight delivery, Airborne has an 18% share, notes Jacobs, who rates Airborne a buy. He says a foreign entity is barred from buying a majority stake in a U.S. airline--Airborne's classification. Airborne, now at 10, could be worth 20 to a strategic buyer, says Jacobs. He notes that DHL has a "significant non-U.S. presence," making Airborne attractive if DHL looks to expand in the U.S. via a minority stake. Jacobs says other buyers could take advantage of Airborne's low valuation. He puts its book value at more than $17 a share. Airborne and DHL couldn't be reached for comment.


By Gene G. Marcial
Get BusinessWeek directly on your desktop with our RSS feeds.XML

Add BusinessWeek news to your Web site with our headline feed.

Click to buy an e-print or reprint of a BusinessWeek or BusinessWeek Online story or video.

To subscribe online to BusinessWeek magazine, please click here.

Learn more, go to the BusinessWeekOnline home page
Back to Top

JULY
 [an error occurred while processing this directive]


Copyright 2001, Bloomberg L.P.
Terms of Use | Privacy Policy

Media Kit | Special Sections | MarketPlace | Knowledge Centers
Bloomberg L.P.