Simon Transportation Services announced that it opposes the consent solicitation by Jerry Moyes in an effort to take control of the company’s board of directors.
The company’s Board of Directors will also remain neutral to his tender offer to purchase shares of the Simon common stock at a price of $7 per share.
Richard D. Simon, Simon Chairman and CEO, said the offer "violates the good faith in which the board cooperated with Moyes’ in the tender offer." Moyes is chief executive of Phoenix-based Swift Transportation.
He said that since Moyes owns 10.8% of the company, he would be able to acquire control without purchasing any tendered shares, and that the consent solicitation is not necessary for the offer to succeed.
The company has already announced that it will not stand in the way of the Moyes’ offer and will soon allow stockholders the opportunity to revoke any consents they have given Moyes.
Simon Transportation, a North American truckload carrier, is based in Salt Lake City, Utah.