TribLIVE

| Business


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

FedEx stock rises on speculation of $1B investment

FDX $103.15 +$4.32
at close on TUESDAY

Daily Photo Galleries

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. UPMC earnings turn positive, but pressures mount
  2. Shared offices provide advantages for startups, nonprofits, others
  3. Energy sector powers Pa. pace
  4. Obama weighs broader move on immigration solutions
  5. EDMC to cut costs, roll out new grant
  6. Cash stash bolsters U.S. Steel
  7. Gas production from Marcellus shale sets record despite fewer new wells going online
  8. Barnes & Noble, Samsung offer  co-branded tablet
  9. Sales, profit fall at retailer American Eagle Outfitters
  10. Stocks shake off Fed’s talk of stepping up interest rate hike
  11. Discretionary purchases take off as consumer confidence shows strength
Subscribe today! Click here for our subscription offers.