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Technology Stocks : United Parcel Service Inc-(UPS) -- Ignore unavailable to you. Want to Upgrade?

To: Sarkie who wrote (71)	11/7/1999 11:58:00 PM
From: Sarkie	Read Replies (1) \| Respond to of 368

UPS seen delivering hot IPO Headlines Last Change 11/05 13:37 By Brad Dorfman CHICAGO, Nov 5 (Reuters) - The folks from Atlanta with the boxy trucks and conservative brown uniforms are expected to make a splash on Wall Street next week, when United Parcel Service Inc. (UPS) makes what is likely to be the largest U.S. initial public offering ever. "You can expect UPS to open up like a rocket ship," Jeff Hirschkorn, IPO analyst at IPO.COM, said. The world's largest privately-held package delivery company plans to offer 109.4 million shares, or about 10 percent of the company, priced at a range of $36 to $42. At the top end of the range, the offering would be worth $4.59 billion, eclipsing the U.S. record of $3.96 billion set by the IPO of oil company Conoco Inc. (COC.A) in October 1998. The company has said that it would use the publicly traded stock as currency to make acquisitions in logistics, distribution and electronic commerce. The funds from the IPO would also be used in a tender offer for some of the existing Class A shares of the private predecessor company, United Parcel Service of America Inc. [UPS.CN], held by employees and descendants of employees. Analysts and IPO trackers expect the deal, tentatively set to be priced Tuesday night, to be very well received by the market on Wednesday. Vincent Slavin, an institutional sales trader who tracks IPOs for Cantor Fitzgerald, said he expects UPS to trade at least 20 points higher than the IPO price when trading opens. "It's a high profile company; it's been around forever. It's a profitable company," Slavin said. The 92-year old company is also expected to be a major beneficiary of the boom in Internet commerce, because it is a major shipper of goods bought online. "I think UPS is more of an Internet play than the rest of (the delivery companies), because they dominate in the three-day ground" market, a favored method of shipping items bought on the Internet, said Brian Eisenbarth, analyst at Collins & Co. But UPS competitor FDX Corp. (FDX). parent company of Federal Express, was also a high-flying stock earlier this year, based on its position in electronic commerce. Its stock has since been hit by rising fuel prices and slowing growth in the domestic package business. Most package-delivery industry analysts declined to comment for the record on the UPS offering. But some did say that the company faces some of the same issues as FDX and others regarding fuel prices and slowing growth in the domestic market. The deal is also being priced during what is expected to be a busy week in the IPO market. Scheduled to be priced next week are 26 IPOs expected to raise an estimated $8.0 billion, according to Thomson Financial Securities Data. But that is not deterring enthusiasm for the UPS offering. "I think that the aftermarket will be super for it because it is a good deal. It's not a hyped up thing," said Peggy Farley, president and chief executive officer of Ascent/Meredith Asset Management Inc. REUTERS