Swift Transportation has rejected a buy-out proposal from former Chairman and CEO Jerry Moyes. Earlier this month Moyes offered $29 per share for the company’s outstanding common stock.
Total value of the deal is estimated at $2.17 billion. In a letter to the company Moyes said he had a financing commitment from Morgan Stanley.
After reviewing the offer, a special committee set up by Swift’s board of directors said Moyes’ proposed price was “inadequate.” The company said the committee has opened discussions with Moyes and is exploring other options, including talks with other potential buyers. But it stressed that there is no timetable and no assurance that any of the discussions will result in a specific transaction.
Moyes co-founded Swift with his brother Ronald 40 years ago. He is currently the largest shareholder with a 26 percent stake in the company, and he continues to serve on Swift’s board.
Total value of the deal is estimated at $2.17 billion. In a letter to the company Moyes said he had a financing commitment from Morgan Stanley.
After reviewing the offer, a special committee set up by Swift’s board of directors said Moyes’ proposed price was “inadequate.” The company said the committee has opened discussions with Moyes and is exploring other options, including talks with other potential buyers. But it stressed that there is no timetable and no assurance that any of the discussions will result in a specific transaction.
Moyes co-founded Swift with his brother Ronald 40 years ago. He is currently the largest shareholder with a 26 percent stake in the company, and he continues to serve on Swift’s board.
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