Knight Says it Will Continue Pursuing USA Truck Acquisition
Michael G. Malloy/TT
Knight Transportation said Sept. 30 that is disappointed that USA Truck rejected its takeover bid, but it is “prepared to take the necessary steps to make this combination a reality.”
USA Truck rejected Knight’s $9-per-share offer Sept. 6, and declined to change its position after Knight made its offer public Sept. 26.
“We are disappointed that USA Truck has once again rejected Knight’s all-cash, premium proposal,” Knight said in a statement.
Knight executives have discussed the proposal with some of USA Truck’s largest shareholders, who support the acquisition and have encouraged Knight to continue to pursue it, the company said.
“We continue to believe that a combination of Knight and USA Truck is better positioned to deliver value for and is in the best interest of all of Knight and USA Truck’s stakeholders,” Knight said.
Knight also said it has expanded its stake in USA Truck. It now has an 11.3% stake, compared with the 8% stake it disclosed when it made its offer public Sept. 26.
Knight’s offer had a total value of about $242 million, $95 million of which would be cash, it said.
USA Truck said it was disappointed by Knight’s offer, which it said significantly undervalued the company. It said it was nonetheless open to discussing proposals with Knight.
Knight is ranked No. 31 on the Transport Topics Top 100 listing of U.S. and Canadian for-hire carriers. USA Truck is ranked No. 52.
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