"In our view, the deal is a significant strategic positive for UPS because it will vault UPS from a #3 position in most European markets to #1 or #2 positions. We would expect the deal to strengthen UPS's global small package network and also significantly broaden its base of European customers," Wadewitz wrote, in the client note. With TNT Express, UPS would also have grown its revenue to $60 billion from $53 billion, while pushing international earnings to 36% of overall revenue from present levels of 26%, according to a press release. TNT Express's failed takeover undercuts the work of some activist hedge funds, who played a role in the shipping unit's split from Dutch Dutch mail giant TNT in May 2011. Jana Partners, an activist fund, pushed strongly for TNT Express's eventual sale, however, in the wake of the cancelled merger with UPS, the company's shares are nearly 40% lower. Benefits of a TNT Express acquisition wouldn't have been as present for UPS's main U.S. rival FedEx Corporation ( FDX), according to Sterne Agee analyst Jeff Kauffman. For more on UPS shares see The #1 recession proof portfolio that will make you richer and the most bought industrial stocks among investment funds. UPS was advised by UBS ( UBS), Morgan Stanley ( MS) and Bank of America Merrill Lynch ( BAC). Goldman Sachs ( GS) and Lazard ( LAZ) gave TNT Express advice on its sale. Written by Antoine Gara in New York.