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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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