KLLM Chairman Makes Bid For Company
April 20, 2000
Jackson, MS-based KLLM Chairman Jack Liles has made an offer to buy the company in a deal reportedly worth more than $33 million.
Liles and MCI Worldcom top executive Bernard Ebbers Thursday presented a proposal to the KLLM Board of Directors to acquire all of the outstanding shares of KLLM for $8.25 per share in cash. With more than 4 million shares outstanding according to the Nasdaq web site, that values the proposal at more than $33 million.
Last month, New Prime Inc. president and CEO Robert Low said he was interested in buying the truckload carrier and said an offering price of $7.60 a share would be feasible.
Low currently holds a 13.17% equity position in the company, while Liles has a 17% stake.
Two weeks ago, Low reportedly requested a list of KLLM stockholders, possibly to solicit consent to remove the KLLM board of directors.
Liles had previously disclosed in an SEC ownership statement that he had a "strong interest" in buying the company and was in the process of developing a proposal.
KLLM posted a net loss for fiscal 1999 of $792,000 versus net earnings of $1.84 million in 1998. Operating revenue for 1999 was $234.6 million versus $229 million the previous year.