CF Says No Merger
December 17, 1998
Dec. 18 – After rumors of a merger between LTL giants Consolidated Freightways and Yellow Corp. fed a stock-buying craze earlier this week, CF issued a statement that merger talks were off.
Consolidated Freightways announced yesterday that “it had been engaged in discussions with a third party concerning a possible business combination, but that those discussions were terminated without any agreement being reached.”
The Akron Beacon Journal reported yesterday that a sudden jump in the company’s stock prices had analysts and union officials wondering about a merger. The rumors were that the third-largest LTL carrier would merge with Yellow Corp. The company’s stock closed Wednesday up 11/16 at 17 ¾ -- up 43% since Dec. 1. Trading in CF’s shares was five times the normal amount earlier this week. There was also a lot of trading in Yellow stock.