Two groups bidding to acquire KLLM Transport Services, the nations’ fifth-largest refrigerated carrier, last week agreed to submit binding offers to a special committee of the board of directors on May 5.
On April 12, Robert E. Low, president of Prime Inc., commenced a tender offer at $7.75 a share for all of the outstanding shares of common stock of KLLM. His company is a refrigerated, flatbed and tank truck carrier based in Springfield, Mo.
Low’s offer was countered on April 20 by KLLM Chairman William “Jack” Liles III and MCI Worldcom President Bernard J. Ebbers, who offered $8.25 a share for all of stock in the Mississippi-based company (4-24, p. 6).
KLLM’s board had rebuffed Low’s overtures because the directors thought his offer was too far below the company’s book value of about $12.60 a share. Board members also had qualms about allowing the president of one of its principal competitors to conduct due diligence without getting an “indication of interest” in paying a higher price.
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