My Comments: Knight Transportation plans seem to have not changed even though their offer has been rejected by USA Truck Inc (USAT) of Van Buren AR.
Source: OverDrive Magazine online: OverDrive
This week, Knight disclosed it had increased its ownership of USA Truck’s outstanding shares from 8 percent to 11.3 percent.
In a statement last month, Knight said it's “ready and willing” to carry through with the transaction. The proposed value was and still is $242 million to buy out USA Truck.
USAT has not fully recovered from the industry's downturn from the 2008-2009 recession, and turnaround efforts have not yet yielded profits that are consistant. The offer by Knight of 39 percent higher than USAT’s closing price on Sept. 25 has not swayed USAT's decision.
Quote from OverDrive Online article:
USA, however, said the proposal and a Knight statement were a “disappointment.” Knight, too, said the rejection was a disappointment and said it is “prepared to take the necessary steps to make this combination a reality.”
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