Takeover speculation boosts YRC Worldwide shares

Shares of YRC Worldwide Inc. were up almost 2 percent today on speculation that the Overland Park trucking giant may be in play.

In midday trading on the Nasdaq Stock Market, YRC Worldwide shares were up 76 cents, or 1.96 percent, at $39.50 after earlier rising to $39.98.

In its June 4 edition, BusinessWeek speculates that YRC, “burdened with dismal earnings because of higher fuel costs and bad weather” may be an attractive buyout target.

Chairman and Chief Executive Officer Bill Zollars didn’t dismiss the possibility, noting the recent private equity bid for Chrysler Group. Zollars said: “It’s always possible, with all the liquidity around.”

Analyst Justin Yagerman of Wachovia Securities told the magazine that YRC Worldwide offers “compelling earnings power and potential value.” Yagerman said he thinks YRC’s shares could be worth $53. He rates the shares at “outperform.”