Knight and Swift Merge

Look for many more mergers like this. They happen because there is inherent weakness and overcapacity in the truck load sector. There will be others that just plain close the doors. You can't run cheap freight forever, and put up with a business model that tolerates over 100% turnover. Note the stock prices on all of these large publicly traded TL carriers. At the same time the Dow is at record highs since the Trump election, these are all down. Wall Street has spoken, no confidence in the TL sector.

 

Knight posts higher profits. All the Mega's would be SUPER mega's if they could figure out how to load plan and dispatch to keep trucks rolling. Hurry up and wait, we'll get back to you.

 

But swift has more power. Theres more to this than profits.

I wouldn't be surprised if it's a legal tactic to protect them from those lawsuits that swift is sure to lose- again!

 

great, that's all we need is more 60mph trucks clogging up the roads

 

Swift is trying to make it look like Knight is taking them over to cover up their bad image with drivers.

 

But knight isn't too stellar either!

 

And in breaking news, hell has frozen over!

 

Swift is fixing to lose a half billion with a B, dollar lawsuit. They decided to bury the family hatchet to save their company. Merging now artificially inflates their stock price to raise hundreds of millions right before the board members retire to other opportunities and qualify for huge creampuff severance packages from the stockholder approval for doing such a great job of increasing stock prices.

Meanwhile they leave right before the big half billion charge so it is not going to be on their resume. And if the worst should happen like the truck company collapses, oh well they got their millions and don't have to worry about it.

 

The horror.....the horror....

 

https://www.forbes.com/sites/lauren...-transportation-trucking-merger/#7f1229543b04

Two bottom feeders become one!