Trucking company USF Corp. said Monday that a majority of its shareholders approved selling the company to Yellow Roadway Corp. for $1.37 billion in cash and stock.
The deal is expected to be closed on Tuesday, USF said in a news release. A telephone conference call featuring Yellow chairman and CEO Bill Zollars is scheduled for 4:30 p.m. EDT Tuesday.
USF, based in Chicago, said that 99.5 percent of votes cast favored the acquisition and 61.5 percent of shareholders voted. Following the closing, USF shareholders will receive for each of their shares $29.25 in cash and the right to receive 0.31584 shares of Yellow stock.
The deal originally involved a 50/50 split in stock and cash, but Yellow executives three weeks ago changing it to a 65/35 cash-stock split. The change brought the level of new Yellow stock below the 20 percent threshold that would have required a vote of the company's shareholders.
Zollars has said the combination will strengthen the Overland Park, Kan.-based company's position in the less-than-truckload business, which transports freight from several customers in the same vehicle, as well as give Yellow a presence in the next-day delivery business.
He said he expects Yellow can wring $40 million in savings from USF in the first year and $150 million long-term. However, trucking analysts said they remain skeptical that Yellow can achieve those numbers during a period of smaller loads and higher fuel costs.
Yellow shares were up 32 cents, or 0.6 percent, to $53.36 in midday trading on the Nasdaq stock exchange. The company's stock has traded in a 52-week range of $32.99 to $64.47 per share. USF shares were up 13 cents, or 0.28 percent, to $46.12 in midday trading on the Nasdaq. The company's stock has traded in a 52-week range of $27.51 to $50.91.
The deal is expected to be closed on Tuesday, USF said in a news release. A telephone conference call featuring Yellow chairman and CEO Bill Zollars is scheduled for 4:30 p.m. EDT Tuesday.
USF, based in Chicago, said that 99.5 percent of votes cast favored the acquisition and 61.5 percent of shareholders voted. Following the closing, USF shareholders will receive for each of their shares $29.25 in cash and the right to receive 0.31584 shares of Yellow stock.The deal originally involved a 50/50 split in stock and cash, but Yellow executives three weeks ago changing it to a 65/35 cash-stock split. The change brought the level of new Yellow stock below the 20 percent threshold that would have required a vote of the company's shareholders.
Zollars has said the combination will strengthen the Overland Park, Kan.-based company's position in the less-than-truckload business, which transports freight from several customers in the same vehicle, as well as give Yellow a presence in the next-day delivery business.
He said he expects Yellow can wring $40 million in savings from USF in the first year and $150 million long-term. However, trucking analysts said they remain skeptical that Yellow can achieve those numbers during a period of smaller loads and higher fuel costs.
Yellow shares were up 32 cents, or 0.6 percent, to $53.36 in midday trading on the Nasdaq stock exchange. The company's stock has traded in a 52-week range of $32.99 to $64.47 per share. USF shares were up 13 cents, or 0.28 percent, to $46.12 in midday trading on the Nasdaq. The company's stock has traded in a 52-week range of $27.51 to $50.91.
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