BBG: XPO’s Europe sale Is said to slow as Blackstone drops out

BLOOMBERG reports:

XPO Logistics Inc.’s sale of its European supply chain business has slowed after a key bidder dropped out of the process, people with knowledge of the matter said.

Blackstone Group Inc., once seen as a favorite to win the auction, is now out of the running following disagreements over valuation, according to the people. XPO has been seeking as much as $4.5 billion for the contract logistics business, the people said, asking not to be identified because the information is private.

XPO had requested suitors submit binding offers by the beginning of this month, the people said. It’s continuing to gauge interest from other potential buyers and plans to ask for another round of bids in early December, one of the people said.

The company is also considering options including a separate listing of the business, the person said. Shares of XPO reversed earlier gains and were down 2.6% at 12:13 p.m. Monday in New York, giving the company a market value of $9.2 billion.

No final decisions have been made, and XPO could still choose to keep the unit, the people said. Representatives for XPO and Blackstone declined to comment.

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