The "highly conditional" bid of 9 euros a share, 42 percent more than yesterday's closing price in Amsterdam, was turned down by TNT's supervisory and executive boards, the Hoofddorp, Netherlands-based company said in a statement. UPS confirmed that discussions were continuing.
United Parcel Service Inc. is pressing ahead with talks to buy TNT Express NV after Europe's second-largest package-delivery company rejected a $6.43 billion takeover offer.
Acquiring TNT would extend the European reach of Atlanta- based UPS, which is already the world's largest package-delivery company. TNT was spun off from Dutch postal operator TNT NV in May, and the former parent, now named PostNL NV, retains 29.9 percent of the company, according to data compiled by Bloomberg.
A bid by UPS or FedEx Corp. has been the subject of speculation for years as the U.S. companies study expansion in Europe, and TNT's American depositary receipts jumped 55 percent, the most since the spinoff, to $12.57 yesterday in New York.
UPS was unchanged at $76.76, while FedEx, the operator of the world's largest cargo airline and No. 2 in package deliveries behind UPS, slid 2.1 percent to $92.99.
TNT rose 2.6 percent to 6.34 euros yesterday in Amsterdam, before the talks were disclosed.
The announcement of the offer to TNT and ongoing talks about a deal spurred Standard & Poor's to put UPS, including the company's AA- corporate rating, on "Creditwatch" for a possible downgrade.