Knight Transportation boosts stake in USA Truck

According to published reports, Knight Transportation has increased its stake in USA Truck and the company indicates that it will continue to pursue a takeover of the rival trucking company.

One week ago, Knight Transportation disclosed it had offered $9 per share for USA Truck Inc. Knight Transportation put the deal’s total value at about $242 million, including approximately $147 million in USA Truck outstanding debt.

According to USA Truck, the company said its board previously reviewed Knight Transportation’s offer and unanimously determined that it undervalues the company and is not in its shareholders’ best interests.

Recently, Knight Transportation said that it raised its stake in USA Truck to 11.3 percent from approximately 8 percent.

At close of trading on October 3, USA Truck shares were $8.95, up $.04 and Knight Transportation was at $16.55, down $.07.

Category: General Update