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Monday, May 27, 2024

Trucking Sector Rallies As Knight Swoops In With Premium Bid For USA Truck

International Business Times. By

Trucking stocks were off to the races on Thursday afternoon after Knight Transportation Inc. (NYSE:KNX) offered $9 a share, or an almost 40 percent premium to buyout rival USA Truck Inc.

In a letter to USA Truck, Knight executives said that the deal would, “improve operational efficiencies at USA Truck – and do so more quickly than the USA Truck management team can alone.” It also said it is prepared to meet with USA Truck to hash out a deal.

USA Truck shares jumped 36 percent on the news.

Other trucking firms joined the rally on hopes the sector may be moving into play. Conway Inc. (NYSE:CNW) rose almost 3 percent, YRC Worldwide (NASDAQ:YRCW) added 2.2 percent and Arkansas Best Corp. (NADAQ:ABFS) rose 2 percent.