Exel employs 109,000 people

The talk in the City is that US giant United Parcel Services (UPS) is the most likely bidder for the firm.

Yet other names mentioned in connection to buying Exel are DHL-owner Deutsche Post and finance firm GE Capital.

With its shares closing Tuesday at 873p, Bracknell-based Exel is currently valued at �2.6bn ($6.3bn).

'Bidding battle'

Exel employs 109,000 people in more than 120 countries and has itself been active in the consolidation of the logistics sector, paying �328m to buy fellow UK firm Tibbett & Britten last August.

Its customers include Boots, Burberry, Mothercare and consumer products giant Procter & Gamble.

Andrew Beh, of brokers ING, said UPS and Deutsche Post were the most likely bidders and an offer of 950p a share would be fair if a bidding battle did not break out.

"It's a great strategic fit for both companies," he said.

"Both are interested in expanding in logistics and you can make a decent case for cost synergies which could justify the premium and that's before you make any argument about revenue synergies."