United Parcel Service
slipped in early trading following a report in
The Wall Street Journal
that it is expected to announce this week that it is buying two logistics companies in Asia and Latin America.
UPS shares were down 1 7/16, or 2%, to 57 7/8 in midday trading Monday. (UPS finished up 1/16, or 0.1% at 59 3/8.)
The pending deals would mark the start of the ambitious acquisition strategy that prompted UPS to go public last fall, raising $5.5 billion.
Lynnette McIntire, a spokeswoman for UPS, confirmed that acquisitions are in the works, but said that no announcement is scheduled. "These acquisitions have not been finalized," she said, "and you never know until the ink is dry." She stressed that the buyouts will be "modest" but declined to elaborate further on the terms.
According to the report, the deals will be followed by several more over the next year, as the Atlanta-based company aims to become dominant in the service-parts logistics field, the business of selling spare parts and other supply-related services to other firms.