Deal Insider: A big brown delivery

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Deal Insider: A big brown delivery

Author: Antony Currie

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Issuer: UPS

Amount: $5.47 billion

Type of issue: Initial public offering

Launched: November 10th

Price: $50 per share

Lead manager: Morgan Stanley Dean Witter


Nicknames are dangerous things. If we based our judgements on them, United Parcel Service would be in a pile of trouble. Big Brown is the rather unflattering one appended to UPS. It's the company's fault, of course - they should never have painted their delivery vans that colour, or put their employees in those awful dirt-brown overalls. And everyone has their own delivery horror story, such as when UPS sent the computer for Euromoney's US editor 3000 miles from Long Island to California, instead of 30 miles to New York.


Luckily for them, investors have managed to look beyond that, even though UPS decided that it should get the big brown van out to go on display outside the New York Stock Exchange on the day of the IPO. At least the front section of a UPS Boeing 727 and a huge blow-up of the hand-held computer used by delivery employees managed to distract from the big brown blob.



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