| Business

Larger text Larger text Smaller text Smaller text | Order Photo Reprints

FedEx stock rises on speculation of $1B investment

Email Newsletters

Click here to sign up for one of our email newsletters.

On the Grid

From the shale fields to the cooling towers, Trib Total Media covers the energy industry in Western Pennsylvania and beyond. For the latest news and views on gas, coal, electricity and more, check out On the Grid today.

FDX $103.15 +$4.32
at close on TUESDAY

By Bloomberg News
Wednesday, July 10, 2013, 12:01 a.m.

FedEx Corp., the biggest air cargo airline, rose the most in nine months on speculation that it may be an investment target for William Ackman's Pershing Square Capital Management LP.

The stock increased 4.4 percent at the close in New York trading for the largest gain since Oct. 10.

Attention focused on FedEx when Ackman outlined in a letter to investors his intention to buy a stake of as much as $1 billion in a large-capitalization, investment-grade U.S. company he didn't identify. FedEx, with a market value of about $33 billion, is in the midst of a cost-cutting restructuring at FedEx Express, its largest unit.

Ackman declined to comment in an e-mail. Jess Bunn, a spokesman for Memphis-based FedEx, also declined to comment.

“The business is simple, predictable, and free-cash-flow-generative, and enjoys high barriers to entry, high customer switching costs and substantial pricing power,” Ackman told investors.

Subscribe today! Click here for our subscription offers.



Show commenting policy

Most-Read Business Headlines

  1. Sluggish wage growth may sap retail spending during winter holidays
  2. Last-minute China worries derailed Fed’s rate hike plans, minutes reveal
  3. Volkswagen executive Horn sidesteps blame in emissions scandal
  4. CMU showcases its lengthy list of fledgling companies at venture event
  5. Other segments nudge Alcoa to slim profit
  6. Fed insight gives stocks room to run; S&P 500 regains 2,000 mark
  7. Rice, Gulfport team on Utica shale pipeline system
  8. Alcoa supplying parts for military jets under $1.1B pact with Lockheed Martin
  9. PNC fined for paperwork errors on municipal bond offerings
  10. Credit bureau Experian keeps info on cellular firm’s customers
  11. Energy efficiency goes mainstream with help of regulations, demand