Knight Transportation Settles with USA Truck
Knight Transportation (NYSE:KNX), one of North America’s largest and most diversified truckload transportation companies, has announced that it has entered into a settlement agreement with USA Truck, Inc. (NASDAQ:USAK) in connection with litigation arising from Knight’s previously announced proposal to acquire USA Truck.
Under the terms of the settlement agreement, USA Truck’s litigation against Knight will be dismissed, with prejudice, and, in connection with the settlement, Knight entered into standstill and voting agreements that extend through September 2014.
“Our agreement with USA Truck represents a positive outcome for our company, as it resolves all related litigation while preserving our flexibility with respect to our investment,” said Kevin Knight, Chairman and Chief Executive Officer of Knight.
He continued: “Knight Transportation 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. At this time, our focus is on leveraging our industry-leading operating efficiency to continue gaining market share and meeting the needs of our customers while considering other potentially value-enhancing external growth opportunities.”
Category: General Update
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