Swift dismisses takeover offer from former owner
PHOENIX, Ariz. — North America’s second-largest truckload fleet has rejected a buyout offer from its former CEO and co-founder.
According to Reuters, Phoenix-based Swift Transportation turned away a $2.2 billion offer (all-cash $29-per-share) from Jerry Moyes, calling the proposal “inadequate.”
A special committee created to review the offer would enter into discussions with other potential buyers and attempt to convince Moyes to up the ante, the news agency reports.
Analysts said at the time of the offer that the bid might undervalue the company, which operates a fleet of 18,000 tractors and 52,000 trailers.
Moyes previously hinted that he could be persuaded to pay more than $29 per share.
Moyes, who is also majority investor in the Phoenix Coyotes NHL team, and is a partner in baseball’s Arizona Diamondbacks, paid $1.25 million to the U.S. Securities and Exchange Commission in September 2005 to settle a case accusing him of insider trading. He stepped down as chairman and CEO of Swift in October 2005.
— with files from Reuters
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