Swift receives buyout offer

Nov. 6, 2006
Swift Transportation Co. confirmed today that Jerry Moyes, its founder and largest shareholder, proposed on Friday to buy out the company’s remaining shares for $29/share in cash.

Swift Transportation Co. confirmed today that Jerry Moyes, its founder and largest shareholder, proposed on Friday to buy out the company’s remaining shares for $29/share in cash. That would be a 21% premium over the company’s closing price Nov. 2, Moyes stated in a letter to the company.

The Phoenix-based truckload giant said it is reviewing the proposal, with Goldman, Sachs & Co. serving as its financial advisor.

Moyes said he would roll over his current shares in the company and receive a commitment from Morgan Stanley to cover the entire amount of debt financing to complete the transaction.

“I believe such a transaction would be in the best interests of Swift and its stockholders, and that Swift’s stockholders will find such a transaction compelling,” stated Moyes.

“It’s very unlikely the board is going to find the offer acceptable,” analyst Satish Jindel, president of S.J. Consulting, told FleetOwner, adding that Moyes seeks to take the company private. “It would more likely have to be $34/share for a buyout offer to get serious attention.”

The amount offered by Moyes is relatively low given that the company’s 52-week high was $34/share and there remains optimism that Swift is positioned for long-term growth in spite of the current softness in the freight environment, Jindel explained.

Jindel added that Swift declined to put out a joint news release with Moyes (as offered by Moyes in the letter), indicating the board is far from ready to take the offer.

“Board action won’t come abruptly…[but] they’ll study the proposal,” Jindel said. “[The offer] shows that there are still a lot of private investors who are keen on this industry.”

Separate from the Swift deal, Moyes is looking to acquire Central Freight Lines.

For previous coverage, read Moyes alters Central deal

For more information, go to http://phx.corporate-ir.net/phoenix.zhtml?c=67346&p=irol-newsArticle&t=Regular&id=926893&

To comment on this article, write to Terrence Nguyen at [email protected]

About the Author

Terrence Nguyen

Sponsored Recommendations

Tackling the Tech Shortage: Lessons in Recruiting Talent and Reducing Turnover

Discover innovative strategies for recruiting and retaining tech talent in the trucking industry at our April 16th webinar, where experts will share insights on competitive pay...

Stop Sweating Temperature Excursions

Advanced chemical indicators give you the peace of mind that comes from reliable insights into your supply chains. Compromised shipments can be identified the moment they arrive...

Stop Sweating Temperature Excursions

Advanced chemical indicators give you the peace of mind that comes from reliable insights into your supply chains. Compromised shipments can be identified the moment they arrive...

How Electric Vehicles Help You Prolong the Life of Your Fleet

Before adopting electric vehicles for commercial/government fleets, prioritize cost inquiries. Maintenance is essential; understand the upkeep of EV fleets. Here’s what you need...

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!