A.M. Executive Briefing - Mar. 23
This Morning's Headlines:
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Senate Panel to Review STB Ruling
A Senate Commerce Committee subcommittee hearing on the 15-month rail-merger prohibition imposed by the Surface Transportation Board will take place Thursday, with Linda J. Morgan, chairwoman of the STB, as sole witness. Journal of Commerce (03/23/00) P. 3Donaldson Silent Partner Wins Tech Award
The Truck Writers of North America has awarded its Technical Achievement Award to the Donaldson Silent Partner, a muffler designed to reduce the noise of truck engine brakes – noise that has caused many U.S. localities to ban the brakes.
Donaldson director of global transportation Rod Kunkel told the Industry Awards Luncheon that the company was spurred to create the muffler because "vehicle noise is just part of the industry's image problem, but it's a very noticeable part," while bans on engine brakes threaten safety. Land Line Magazine Online (03/23/00)
VW Looking "Very Closely" at Acquisition in Commercial Vehicles
Volkswagen Chairman Ferdinand Piech said Thursday that VW is eyeing potential commercial-vehicles acquisitions "very closely." The company plans to expand the commercial-vehicles division by internal growth or by an acquisition, subject to economic conditions, he said.The situation has changed due to the European Commission ruling against Volvo and Scania's merger plans; VW commercial vehicles division chief Bernd Wiedemann said last week that VW may consider a Scania acquisition. Agence France Presse (03/23/00)
Missouri Company's President Considering Buyout of KLLM
Robert Low, president of the Missouri-based carrier New Prime and holder of 13.7% of stock in KLLM Transport Services, has made an unsolicited takeover bid for KLLM.A March 16 filing by Low with the Securities and Exchange Commission said he could replace KLLM's board of directors with himself and three other New Prime officers, who would vote in favor of a sale of KLLM. The plan must be approved by a majority of shareholders in KLLM.
Low has offered to pay 25% more than the per-share value for KLLM; he has also stated that he believes KLLM shareholders would be attracted to an all-cash deal because the stock "is thinly traded and historically has not paid dividends."
A.G. Edwards & Sons transportation analyst Donald Broughton said KLLM's operating performance would have to be improved prior to any sale. Associated Press (03/22/00)
Roadway Will Pay for Oscars Theft
Roadway Express will be hit with an insurance claim from R.S. Owens, the Chicago firm that makes the Oscars statuettes, to pay for the three trophies that have not been found as well as the costs related to making 55 more statuettes for Sunday's Academy Awards presentation.The pallet of ten boxes of trophies was insured by the trophy maker for $450, although it was worth roughly $18,000 in all; the company did not want to draw attention by insuring at a higher value.
The Academy of Motion Picture Arts & Sciences may also file a claim, but a spokesman said that was uncertain. Journal of Commerce Online (03/22/00)
Paccar Now Wheels, Deals in the World of High Tech
Truckmaker Paccar has begun investing in high-tech firms and is keeping an eye open for other start-ups to fund, with "a fairly significant eight-figure" commitment already made, according to Chief Information Officer Patrick J. Flynn.The company is interested in forging relationships with start-ups that have technology that could help Paccar, and helping that technology succeed through Paccar's technical, marketing, financial, and distribution abilities.
Paccar already considers itself a firm oriented toward technology, including computer-aided truck design, alternative-fuels studies, and a current drive to bring its information technology up to date; in addition, Flynn says the company has "always been integrators" in addition to being a manufacturer. Seattle Post-Intelligencer (03/22/00) P. C1; Virgin, Bill
16 Roadway Drivers Feted for Road Safety
Roadway Express held an awards ceremony for 16 safe drivers Tuesday in Akron, Ohio, where the carrier is based; the drivers, from different parts of the United States, were given individual trucks for their exclusive use while employed at Roadway. Each driver has gone without a preventable accident for 2 million miles or more. Akron Beacon Journal (03/22/00) P. F8© copyright 2000 INFORMATION, INC. Terms of Service
