Shares of General Motors reached an important milestone on Friday, closing above their initial public offering price of $33 for the first time in more than two years. GM shares reached $33.FedEx will have to fend off competition from United Parcel Service to keep a contract valued at more than $1 billion with its largest customer, the U.S. Postal Service.
The agreement generated about $1.4 billion in the latest fiscal year, more than 3 percent of FedEx’s sales, according to data compiled by Bloomberg, and covers shipping of first class, priority and express mail.
UPS “definitely wants to bid” for that work when the Postal Service seeks proposals after the contract’s expiration in September 2013, said Norman Black, a company spokesman.
United Parcel Service, which already has a $100 million contract with the Postal Service, is the “most logical competitor,” said Ben Hartford, an analyst in Milwaukee with Robert W. Baird & Co.
“I would put FedEx just being the incumbent as the most likely to get the business going forward, but it would likely be under different terms,” Hartford said.
