Storm Rannard for Insider News reports - Geman giant moves for UK Mail

Insider news report - Germany's Deutsche Post DHL looks set to acquire UK Mail after a £242.7m takeover bid was recommended to shareholders of the parcel delivery business. Under the terms of the offer, UK Mail shareholders will receive 440 pence per share and will also be entitled to an interim dividend of 5.5 pence per share. Peter Kane, chairman of UK Mail, said: "We have made good strategic progress in recent years, establishing leading positions in our key markets of parcels and mail, investing in additional capacity in our operations and in IT and product and service innovation. "However, the board believes that UK Mail will benefit significantly from becoming part of Deutsche Post DHL, and will be better positioned to continue to develop our parcels and mail businesses with the benefit of Deutsche Post DHL's greater financial and operational resources." The offer is subject to approval from UK Mail shareholders. The company's directors were advised by Investec Bank and described the bid as "fair and reasonable". Jürgen Gerdes, board member of Deutsche Post DHL, added: "The on-going expansion of our parcel network in Europe is driven by increasing demand within our e-commerce customer base for cross-border deliveries.