UPS Inc. approved a $5 billion share buyback program and boosted the amount of cash it plans to use to buy Dutch package firm TNT Express NV.
The repurchase plan has no expiration date and replaces one announced in 2008, UPS said in a statement.
UPS, which announced in March that it will buy Netherlands-based TNT Express for $6.8 billion, plans to finance the purchase with about $5 billion in cash and $1.8 billion in debt — a $2 billion increase in the cash portion compared with its original guidance.
TNT last week reported first-quarter operating income of about $48 million, turning around a $103 million loss a year earlier, Reuters reported. Revenue rose 1.3% to about $2.4 billion.
UPS is ranked No. 1 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.