Swiss freight forwarder, Panalpina, has rejected DSV’s $4 billion bid for the company, after it’s leading stakeholder turned the bid down.

The Ernst Goehner Foundation owns almost 46 percent of Panalpina’s shares, with Foundation board member, Thomas Gutzwiller, stating:

“We strongly believe that Panalpina can create more value for its shareholders, customers and employees through its consolidator strategy than the published purchase offer from DSV.”

Panilpina have stated that their board “continues to carefully review the situation” in light of these developments.

The move to reject the bid is a surprise to some, as Panalpina has seen struggles in recent years with its ocean freight services, alongside delayed IT system implementation – an area in which DSV excels. However rumoured potential rival-bidder, Kuehne + Nagel quoted Panalpina as “hopelessly overvalued” by the $4 billion bid.

Another of Panalpina’s key stakeholders, Cevian, have previously pushed for the company to consider a buyout. They have not commented further at this time.

This is the second bid which has been turned down in a matter of months for DSV, after it previously submitted a $1.55 billion proposal to CEVA Logistics in October 2018. It’s still uncertain if the Danish giant will up their offer – perhaps not, based on K+N’s response – or whether they might look to other opportunities for growth.

The 20 largest global freight forwarders control only a third of the market, making partnerships or takeovers an enticing strategy for boosting profitability.