Trucking News: Knight-Swift Transportation Holdings Inc

Tazz

Infidel
Truckers Swift and Knight Combine in a Deal Valued Over $5B


As part of the deal, announced Monday, each Swift share would be converted into 0.72 share of the new entity through a reverse stock split. Knight shares would be exchanged one-for-one. Swift shareholders would own 54% of the new company, with Knight holders owning the rest.

The Wall Street Journal had reported the deal overnight.

The new group is to be named Knight-Swift Transportation Holdings Inc.


So which one was in trouble? For now that say both brands will be run seperate but I see that going away as stock holders see dual yards, shops, etc etc eating profit.
 

GAnthony

Methuselah
Supporter
Truckers Swift and Knight Combine in a Deal Valued Over $5B


As part of the deal, announced Monday, each Swift share would be converted into 0.72 share of the new entity through a reverse stock split. Knight shares would be exchanged one-for-one. Swift shareholders would own 54% of the new company, with Knight holders owning the rest.

The Wall Street Journal had reported the deal overnight.

The new group is to be named Knight-Swift Transportation Holdings Inc.


So which one was in trouble? For now that say both brands will be run seperate but I see that going away as stock holders see dual yards, shops, etc etc eating profit.
i'd almost say Swift. only as a guess, i am basing that on nothing but speculation.
 

Electric Chicken

Well-Known Member
Supporter
Can't wait to see white knights running around everywhere.
 

ironpony

Professional Pot-Stirrer
Supporter
Shakes head... it don't look like the Swifties are on top in this little fiasco.
 

Injun

Rabid Squaw
Staff member
Supporter
Shakes head... it don't look like the Swifties are on top in this little fiasco.
It just means Swift has made more shares available in relation to company value than Knight has. I've seen a 25% gain in the value of my Swift stock since I bought it.

What this merger does is cut Jerry Moyes back to a minority holder unless he jumps onto some Knight stock. When Swift stock was offered, he retained majority interest in the company.

Next year or so is going to be ...challenging.
 

ironpony

Professional Pot-Stirrer
Supporter
Next year or so is going to be ...challenging.
No kiddin'!

Look at the corporate structure... Knight's team (Kevin Knight CEO) has all of the top positions. Jerry Moyes is being shunted aside. In a couple of years the Swift side of things will be completely gone.

Look at the Heartland-Gordon merger as an example.
 

Mike

Well-Known Member
Staff member
Were looking at the race to be the largest mega carrier. Not sure what the thought process was for these companies, or if someone was in trouble, but Schneider seems to be pursuing the same sort of angle. The IPO was, outside of paying debt, is geared toward aggressive acquisitions.
 
Top