What's new

ODFL | Old Dominion’s $1.5 Billion Bid for Yellow's Truck Terminals Sets Stage for Upcoming BK Auction

I suggested to the manager this morning that behind the scenes OD and Estes will team up to buy all properties and have a contract who gets what and what percents are paid by the contractees
 
Being that both companies are run by families from the south and have been around a while I wouldn't be surprised if they already have some relationships between the companies.

But I also thought maybe OD doesn't want everything so much as just keep Estes from gutting all.

And then I heard that winning the bid doesn't necessarily mean you will get it all. Only that you get a preferred position in the process.

And probably neither wants or needs everything. But I would hope that whoever handles it is trying to maximize the money that they take for the assets. So maybe in the end both will get some and maybe even some other parties.

TBD
 
DayliteDean said:
That's kinda where I went, I'm thinking there might have been a side deal already made about certain properties OD really wanted to avoid a costly bidding war.
Click to expand...
No side deals in bankruptcy court, everything has to be approved by the judge and all properties are going through the auction process
 
Triplex said:
www.law.cornell.edu

collusive bidding

www.law.cornell.edu www.law.cornell.edu
Click to expand...

I could be wrong, but I don't think that applies here. First

Where collusive bidding is well established, prices can rise substantially, in some cases by as much as several hundred percent.
Click to expand...

That's the not the goal. The goal seems to be to keep the price low and I also believe both parties would have to be bidding.

“collusive bidding refers to agreements by contractors in a particular trade to cooperate to defeat the competitive bidding process in order to assign winners and inflate prices.”
Click to expand...

I don't think that's what they're doing either. I think they agreed to not outbid each other and come to terms on the properties once the auction is complete. Collusive bidding (as explained on the link) wouldn't apply.
 
You must log in or register to reply here.
Top