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FEDERAL EXPRESS DEAL HELPS IT GO AFTER UPS

Federal Express was so pleased with the wave of new business it got during the Teamsters strike at United Parcel Service that it's going after some more.

FedEx announced plans Monday for a $2.4 billion acquisition that will put it more squarely in competition with UPS and increase its involvement in the logistics side of business shipping.

FedEx said it is acquiring Caliber System Inc., the parent of RPS Inc., a trucking company that focuses on non-express shipments. FedEx specializes in express shipments and overnight service.

"It's an opportunity to sort of go after UPS at a point when UPS is somewhat distracted by its own internal issues," said Helane Becker, a market analyst with Smith Barney.

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