TribLIVE

| Business


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

FedEx stock rises on speculation of $1B investment

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.

 

 
 


Show commenting policy

Most-Read Business Headlines

  1. As smokers seek Cuban cigars, retailers point to trade embargo
  2. EPA says it won’t regulate coal ash as hazardous waste
  3. Coal ash sites have tainted hundreds of waterways, aquifers
  4. Real estate union: Howard Hanna buys Langholz Wilson Ellis
  5. ExOne Co. moves solidify authority under CEO
  6. Americans support strict rules for drones in poll
  7. Treasury turns profit as it exits GM bailout
  8. Upscale Verano takes part in Buick’s success
  9. Pennsylvania jobless rate drops to 5.1 percent
  10. Western Pa. utility workers OK contract with FirstEnergy
  11. Signs point to gauge, an easy fix
Subscribe today! Click here for our subscription offers.