ATCO
November 17th, 2005, 14:07
Moyes makes a move on Central Freight Lines
Central Freight Lines has received a proposal from a company controlled by its ex-chairmain, Jerry Moyes, to acquire Central Freight for $2.25 per share.
(11/15/2005)
In terms of the proposed transaction, all Central stockholders, other than Moyes and certain Moyes family trusts, would receive a cash amount equal to $2.25 per share.
Moyes and certain Moyes family trusts own approximately 31.5% of Central's common stock. In April, Central Freight announced that Jerry Moyes would step down from the company's board of directors, effective immediately. [Refer Teamsters 2 : Jerry Moyes Nil]
The proposal will be reviewed by a special committee of Central's Board of Directors, comprising Cam Carruth and Porter Hall, each of whom is independent. The Committee has engaged independent legal counsel and a financial advisor in connection with this proposal.
Cam Carruth commented: The committee, with the assistance of management, will review this proposal with the interests of Central's stockholders, employees, customers and suppliers in mind.
The transaction proposal is subject to reaching a definitive agreement along with customary conditions, including, without limitation, financial and legal due diligence, financing, approval of Central's board of directors and stockholders, and the absence of any material adverse change to the condition (financial or otherwise) of Central and its subsidiaries. There can be no assurance that a definitive agreement will be entered into or that any transaction will be consummated.
Central has also announced that it has executed an amendment to its primary credit facility that increased its borrowing capacity by $5 million, to support its turnaround plans.
Report Here (http://www.eyefortransport.com/index.asp?news=48663&nli=freight&ch=)
Central Freight Lines has received a proposal from a company controlled by its ex-chairmain, Jerry Moyes, to acquire Central Freight for $2.25 per share.
(11/15/2005)
In terms of the proposed transaction, all Central stockholders, other than Moyes and certain Moyes family trusts, would receive a cash amount equal to $2.25 per share.
Moyes and certain Moyes family trusts own approximately 31.5% of Central's common stock. In April, Central Freight announced that Jerry Moyes would step down from the company's board of directors, effective immediately. [Refer Teamsters 2 : Jerry Moyes Nil]
The proposal will be reviewed by a special committee of Central's Board of Directors, comprising Cam Carruth and Porter Hall, each of whom is independent. The Committee has engaged independent legal counsel and a financial advisor in connection with this proposal.
Cam Carruth commented: The committee, with the assistance of management, will review this proposal with the interests of Central's stockholders, employees, customers and suppliers in mind.
The transaction proposal is subject to reaching a definitive agreement along with customary conditions, including, without limitation, financial and legal due diligence, financing, approval of Central's board of directors and stockholders, and the absence of any material adverse change to the condition (financial or otherwise) of Central and its subsidiaries. There can be no assurance that a definitive agreement will be entered into or that any transaction will be consummated.
Central has also announced that it has executed an amendment to its primary credit facility that increased its borrowing capacity by $5 million, to support its turnaround plans.
Report Here (http://www.eyefortransport.com/index.asp?news=48663&nli=freight&ch=)