UPDATE 2-TNT shares jump on report Fedex in talks to buy it

(Adds detail, updates shares)

By Catherine Hornby

AMSTERDAM, July 14 (Reuters) - Shares in TNT NV (TNT.AS: Quote, Profile, Research) jumped almost 30 percent on Monday after a report that FedEx Corp (FDX.N: Quote, Profile, Research) is in preliminary talks to acquire it, raising the prospect of a bidding war for the Dutch mail company.

The Financial Times newspaper reported on Saturday that FedEx Corp wanted to add to its European parcel delivery service and that both United Parcel Service (UPS.N: Quote, Profile, Research) and FedEx have "coveted" TNT's European parcel business.

TNT and FedEx declined to comment on the report.

"Such a move would make a lot of strategic sense for FedEx, given its predominantly US-business gearing and the weakness in the US Express market," said ING analyst Axel Funhoff in a note.

"Should FedEx make a formal bid for TNT -- there could be a quick counter bid from UPS, who should be equally interested in TNT but which has deeper pockets."

TNT shares were up 26 percent at 23.26 euros by 0946 GMT, making it the main gainer in the DJ Stoxx industrial goods and services index , which was up 2 percent.

The smallest of the world's top four express delivery companies has often been seen as a target for its bigger peers and some analysts say this could be the opportunity for them to pounce.