Yellow Roadway Sets Stock Repurchase Program

September 14, 2005 11:00 AM, EDT

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ellow Roadway Corp. said Wednesday that its board approved a stock repurchase program that authorizes the company to repurchase up to $50 million of its common stock.

“This program reflects our confidence in the strategy of Yellow Roadway and the belief that our stock is significantly undervalued in the market,” said Bill Zollars, Yellow’s chairman and chief executive officer.

The company's stock hit a six-month low Tuesday of $41.13 a share, compared with a six-month high on March 14 of $62.85.

"As we continue to progress toward our targeted $450 million in combined Roadway and USF synergies, we believe our results will reflect the long-term value to shareholders," Zollars said in a statement.

Less-than-truckload carrier Yellow closed its $1.37 billion acquisition of USF Corp. in May. (Click here for previous coverage.)

Yellow Roadway is ranked No. 3 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.