DHL Corporation and Subsidiaries - Page 110

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          VI.  Negotiations With UPS                                                  
               From late 1986 through early 1988, DHL and DHLI negotiated             
          with UPS concerning a potential merger.  UPS was seeking to gain            
          access to the operational portion of the DHL network outside the            
          United States.  UPS sought to accomplish that by purchasing all             
          of the stock; subsequently, however, it focused on a purchase of            
          the assets of DHLI, MNV, and DHL.  UPS showed little interest in            
          the DHL trademark, and no attempt was made to value the DHL                 
          trademark for purposes of the negotiations.  It was UPS’ intent             
          to phase in its own name and phase out the DHL name over a                  
          transitional period extending about 1-3 years beyond acquisition.           
               In 1987, UPS made a “final offer” of approximately                     
          $330 million for most of the assets of the DHL companies                    
          (excluding certain “carved out” assets that UPS did not wish to             
          acquire).  UPS did not agree to assume any liabilities in                   
          connection with this offer.  The DHL trademark was included in              
          the assets that UPS proposed to acquire.  Including the carved-             
          out assets, UPS’ offer would have been approximately in the $450            
          to $500 million range.  The negotiations with UPS broke down and            
          failed primarily because the parties could not agree on price.              
          VII.  1990-92 Transaction With Foreign Investors                            
               On December 21, 1988, a group of foreign investors made                
          their first generalized offer.  Ultimately, the foreign investors           
          were Japan Air Lines Co., Ltd. (JAL), Nissho Iwai Corp. (Nissho             
          Iwai), and Deutsche Lufthansa Aktiengesellschaft (Lufthansa).               

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