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USA Truck disappointed takeover bid made public

On Thursday, Knight Transportation Inc. disclosed it had offered $9 per share for rival trucking company USA Truck Inc. Knight Transportation put the deal's total value at about $242 million, including approximately $147 million in USA Truck outstanding debt.

The Associated Press

9/27/2013

VAN BUREN, Ark. — USA Truck is disappointed Knight Transportation made public its unsolicited takeover offer of about $94.5 million and says the company is being misleading in its version of events.

On Thursday, Knight Transportation Inc. disclosed it had offered $9 per share for rival trucking company USA Truck Inc. Knight Transportation put the deal's total value at about $242 million, including approximately $147 million in USA Truck outstanding debt.

Knight Transportation claimed that USA Truck had not been interested in a deal and that it would consider "modestly" raising its offer if it finds more value in USA Truck during a due diligence process.

Knight Transportation also announced that it has already purchased about 8 percent of USA Truck's outstanding stock.

In its response, USA Truck said its board previously reviewed Knight Transportation's offer and unanimously determined that it undervalues the company and is not in its shareholders' best interests.

USA Truck said it had offered to meet with Knight Transportation to talk about why it considered the bid inadequate, but that Knight Transportation turned down the offer to meet. USA Truck said Knight Transportation also said it saw no point in having further talks about a possible transaction at that time.

USA Truck said that it is still open to all strategic options, including further talks with Knight Transportation. But the company added that it still feels that moving forward with its strategic plan provides superior value to its shareholders.

Knight Transportation is based in Phoenix, while USA Truck is based in Van Buren, Ark.

Shares of USA Truck shed 3 cents to $8.77 in Friday morning trading. Knight Transportation's stock fell 3 cents to $16.57.


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