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FEDEX TEAMS WITH FRANCE’s LA POSTE

FEDEX TEAMS WITH FRANCEÆS LA POSTE

   FedEx Corp. and La Poste, the national postal company of France, have formed an alliance that gives FedEx greater reach into Europe's growing ground parcel delivery market and La Poste expanded access to international express air services.

   Under the three-year agreement, FedEx will work with the international parcel delivery unit of La Poste, Chronopost International. Chronopost is active throughout Western Europe and Scandinavia. FedEx operates its main European hub at Charles de Gaulle International Airport in Paris, and rumors of a deal with the French post have been circulating since early this year.

   The move solidifies the landscape in Europe's increasingly competitive international parcel delivery market.

   Deutsche Post AG has acquired domestic parcel delivery companies across the continental and is tying its network together using DHL International's European air network. Deutsche Post owns 25 percent of DHL.

   TNT Post Group, parent company of the Dutch postal service, owns parcel delivery company TNT, which is trying to hold onto to the top spot in Europe's international express market.

   United Parcel Service, active in Europe, has yet to play its hand. So far the company is going it alone, though analysts have expected a big European acquisition from Big Brown since its huge initial public offering last year.

   La Poste said it wants to control 10 percent of Europe's parcel market by 2002.