Knight attempting hostile takeover of USA Truck

More here:

Knight Transportation Bids $9 per Share for USA Truck
http://www.dailyfinance.com/2013/09/26/knight-transportation-bids-9-per-share-for-usa-tru/

 

I will never work for USA Truck, but obviously its worth something. These other carriers see something in them. If USA Truck can get back on stable financial ground, the other carriers are worried that USA will be a force to be reckoned with. That's my own take on it. I could be completely wrong.

 

It's a deal that Knight thinks they can grow 50% overnight and the shareholders like it. They also think if they can operate USA even close to as profitably as they currently operate Knight then their $9 investment per share probably becomes worth $18. It's also a way to knock out a large competitor in the van market that is probably going to go broke or be bought by someone eventually. A turnaround plan that hasn't been able to break even in 5 years is probably not viable.

 

If Knight Transportation does take over USA Trucking, how is this going to effect the truck drivers currently working for USA Trucking? USA Trucking is a good size outfit.

God bless every American and their families! God bless the U.S.A.!

 

My opinion is that Knight will want to keep them all if possible and convert them to Knight employees/drivers. When Knight bought Edwards Brothers and Roads West they tried to keep the drivers. Those were much smaller deals and both integrated into the Knight Refrigerated business but it took some time. Even if they do buy USA it's not like the day the deal closes everything will change. Knight has about 4000 trucks and USA about 2300, it's not like they can go in and change everything USA is doing overnight. I'd expect a year or two transition.

 

They will become Knight Drivers and some of them will be headed down the road, Because Knights standards are higher then U.S.A. Truck and so when the review comes up, and they don't meet the mark guess what!! Bye Bye! See ya Later! If you are there and a sub par drivers with issues then I'd worry if not then Knight isn't all that bad. Good Luck!

 

The economy continues to be in the toilet, regardless of what the talking heads tell us. It spells struggle for many companies and let's face it...there is just too much capacity in the trucking field. It's been that way since 2008 and there are no viable hopes that things will turn around in the near future.
That said, consolidation is the next step. Eliminate competition, reduce capacity and stablize rates.
What Knight is trying to do is buy freight lanes and business. It could work. Time will tell.
Look for much more of this in the future. This isn't anything unusual...Look at KLLM/FFE or Swift/Central as just two examples.

 

Seems like the shareholders would like it. USA Truck's stock was almost double today on the news that Knight wants to buy them. Too bad the board and the executives are more concerned with themselves than the shareholders. In the end, Knight will own USA Truck. The upside is the USA drivers will be fine. The downside is the corporate office will probably close and several hundred employees will be out of work. All the while, the board and execs who totally failed will walk away with a truckload of money. I'm a capitalist but it's stuff like this that turns people into socialists.

 

Celedon tried the same thing a couple.of years ago. Didnt work. It may now. But knight will have to buy up the outstanding shares and take over the board with majority vote.

Not sure I'd stay if knight took.over. I'd give it a shot. Why run and be looking for a job with no income coming in.

I'm fine here and what ever happens in Van Buren is not.my concern. I do the job asked of me and they pay me. When the pay stops I stop. Its simple. My loyalty is to me first not the company.