Leo H. Suggs, chairman of Overnite Corp., Richmond, Va., announced that Union Pacific Corp.'s board of directors has approved the sale of trucking subsidiary, Overnite
through an initial public offering.
Overnite is the sixth-largest LTL carrier in the U.S., and the largest non-union LTL.
Union Pacific had announced an IPO for Overnite in 1999, but withdrew the offering on Sept. 14 of that year. At the time, the company said the withdrawal had nothing to do with an organizing effort by the Teamsters that had begun in 1994. But less than a month after withdrawal of the IPO, Teamsters struck Overnite. The strike dragged on with decreasing effectiveness for three years and finally collapsed last October.
In the current offering, the shares of Overnite are being offered by Union Pacific as the selling shareholder. The shares will be offered by an underwriting group managed by Credit Suisse First Boston and Morgan Stanley & Co. Incorporated.