UPS's Fritz unit to sell custom clearance unit to FedEx division

ATLANTA - United Parcel Service Inc.&#39;s custom brokerage unit Fritz plans to sell a division that performs work entirely for FedEx Corp. to that company&#39;s Tower Group International unit. <br> <br> Terms were not disclosed. <br> <br> Atlanta-based UPS purchased Fritz in January 2001, prompting FedEx to sue the next month over access to customer information UPS gained through the acquisition. UPS then filed a countersuit Feb. 19. <br> <br> The sale to Tower Group will resolve the litigation when the deal closes in 30 days, both companies said. Tower Group is a division of FedEx Trade Networks, a FedEx subsidiary. <br> <br> The sale will affect 1,000 workers who will change employers. The positions are in Anchorage, Alaska; Memphis, Tenn.; Oakland, Calif.; and Springfield, Mo. Terms of the transaction were not disclosed. <br> <br> ``These employees have been working only on FedEx&#39;s express customs business so we expect the impact on their day-to-day work to be minimal,&#39;&#39; said Joe Pyne, a UPS senior vice president. <br> <br> UPS shares rose 55 cents to close at $57.48 in trading Thursday on the New York Stock Exchange, where FedEx shares rose 39 cents to $53.55.

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