Moyes Bid Intensifies Struggle For Simon Transportation
June 08, 2000
The fight for control of Simon Transportation Services got serious last week, as trucking executive Jerry Moyes administered a "consent solicitation" to gain control of Simon’s board of directors.
Richard D. Simon, along with the rest of the family members that sit on Simon’s board of directors, has remained neutral toward Moyes’ tender offer. They have said they will not sell any of their shares to the Moyes group at the offered price, valued at an estimated $39 million, or $7 per share. Moyes is chief executive of Phoenix-based Swift Transportation, a regional truckload carrier.
In a recent letter to stockholders, the board expressed concern with the offer, saying that Moyes is attempting to take control of Simon without suitably compensating the shareholders. Simon Transportation, based in Salt Lake City, provides temperature-controlled trucking for the food industry.