Teamsters Strike Scuttles Overnite IPO
August 28, 2000
Union Pacific has put on hold plans to spin off its less-than-truckload subsidiary Overnite Transportation, reports Traffic World.
Behind the decision are the Teamsters union's 10-month-old unfair labor practices strike against the company and poor market conditions in general.Traffic World
says that at one time, UP thought it could get as much as $500 million in an initial public offering, but analysts now say it would be hard to get $300 million. UP bought the company, the country's largest nonunion LTL carrier, for $1.2 billion in 1987.