Wires

EU to object to UPS bid for TNT-FT

LONDON, Oct 10 (Reuters) - UPS will be served with aformal European Union complaint as early as next week, outliningserious doubts about its proposed 5.2 billion euros ($6.7billion) takeover of Dutch rival TNT Express , theFinancial Times reported.

The European Commission, the EU's antitrust regulator, wasclose to finalising its investigation and will issue a"statement of objections" about the tie-up, the FT said onWednesday, citing people involved in the process.

The EU's competition commissioner Joaquin Almunia in Julylaunched an investigation into the deal centered on concernsabout the combined company's large market share.

Potential competition issues in the small package deliverysector could arise, particularly among international expressservices in some European Union countries where the combinedcompany would have very high market shares.

The FT report said investigators have told UPS, the world'sNo. 1 package delivery company, that the objections will bedelivered unless it offers divestments or commitments toeliminate the antitrust concerns.

($1 = 0.7754 euros)

(Reporting by Stephen Mangan; Editing by Richard Pullin)

((stephen.mangan@thomsonreuters.com)(+44 0 20 7542 7931))

Keywords: TNT UPS/EU