After trying to pursue their hostile takeover of USA Truck Inc. for months, Knight Transportation Inc. has agreed stop their attempts to buy a controlling stake in the carrier. Knight has agreed to not acquire any additional shares of USA Truck for the next seven months.
The agreement comes as a term of settlement of a lawsuit brought by USA Truck against Knight after it started its takeover attempt back in September. The suit claimed that Knight had violated a confidentiality agreement, using information that they had obtained from USA Truck for unrelated purposes in order to facilitate a hostile takeover of the company by purchasing a controlling interest of shares.
Kevin Knight, the Chairman and CEO of Knight Transportation voiced his approval for the terms of the settlement, but quickly stated that Knight “may continue to own shares in USA Truck and, subject to the terms of the agreement, may consider its options in the future regarding that investment.”
So even though Knight has backed off for now, they still retain ownership of their shares which total 12.4% of USA Truck. The terms of the settlement prevent Knight from voting at shareholder meetings, seeking a seat on the board of directors, or purchasing any new shares of USA truck until October 1st, but after that, everything is fair game.
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Source: ttnews
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I can sum it up in one word greed
I agree. While at Knight I had more luck finding a needle in a haystack then a trailer.
Come on guys. No trucking company pays their drivers just to bobtail around.
Knight transportation is a joke how they remain in business beats me only trucking company I no of to bring a driver in spend 7 days in a motel then put the blame on there main office for reasons behind why I couldn’t be hired mind you I wored there 8 months prior to my return
I wondered what was going to happen to this. I guess come October we will hear more about it when Knight starts taking up shares again. Sad that it took a violation for this to be stopped but then again i’m sure the lawyers over looked that part and neglected to tell the appropriate persons.