Friday, October 11, 2013
Stumbled across this little bit of news - USA Truck is complaining about Knight Transportation. The two companies had been in confidential talks about possibly doing a friendly deal. Knight had signed a confidentiality and standstill agreement, but now, according to USA Truck, Knight has been using its confidential information to pursue a creeping acquisition of the company. In response USA Truck has filed a suit - in Arkansas - seeking an order prohibiting Knight from acquiring more stock and divesting itself of the stock it acquired. I suppose USA will be making arguments simlar to those in Vulcan/Martin Marietta. But, my first thought was well, why doesn't the board adopt a pill? Turns out USA Truck has both a pill and a staggered board - a pretty insurmountable defense. And that's not enough to dissuade a creeping acquisition? Interesting. Something else must be going on here.