Yellow may be takeover target

[sparky]

NEW YORK, May 24 (Reuters) - U.S. trucking company YRC Worldwide Inc. (YRCW.O: Quote, Profile , Research) could be a takeover target, with big truckers seeing the company as a "tempting asset play," BusinessWeek reported in its June 4 edition.

http://yahoo.reuters.com/news/articl...mktNews&rpc=44

With only 5.57% of the stock owned by insiders and 78.3% owned by institutions any viable attempt would come down to a proxy vote with institutional ownership holding a huge majority of the votes. May be a good time to consider investing in yellow since they are near their all time low.

There are several angles that something like this could involve a violateable situation.

[Dockworker]

I wonder if DHL has any plans on taking over. Would seem like a good marriage to become Global.

[pro1driver]

Originally Posted by Dockworker

I wonder if DHL has any plans on taking over. Would seem like a good marriage to become Global.

i remember some "rumors" or just plain "stories" that DHL actually was the company that fronted yellow with cash to buy out the other trucking companies, like Preston, Jevic, Roadway......??

[Apostolic]

I don't know about any of these Yellow rumors?
But I have woundered how Yellow was able to afford to buy Roadway,seeing Roadway already owned NewPenn,and they were very heavy into diebt?

Also Roadway was bigger than Yellow,and Yellows biggest competitor.

Now I have heard that R & L owns a lot of trucking terminal buildings,across the country,they rent them out to other trucking companies.
R & L bought them when Yellow allowed Preston to go under.

Its hard for us lowly truck drivers to keep up with these trucking companies,and theit high finance deals going on,and on.

[sparky]

Keep in mind this article is just a possibility. If a controlling share or all shares of the stocks could be bought it could be a big conglomerate that invest in the hopes of buying a corporation at a bargain. The different possibilities than could be many. I would think that it could be possible to make a 20% to 25% return on Yellow stock. Maybe more. If there is a buyout the buyer would have to attempt to make it worth it for the share holders to get there vote in a proxy, Yellow could buyback a large percentage of the shares to make them more valuable, They have already done this once and it had no effect. The corporation could be sold off in pieces. Yellow could keep plugging away. Just some possibilities.

[Apostolic]

Although you all know trucking companies are not a very good business investment.
If trucking companies are clearing a small precentage of one dollar they are doing ok.
Most trucking companies costs to operate cut very deep into their bottom line.

I remember back when trucking companies were operating over 100 %,untill they got into the black,or just closed their doors.

Yes sir the cost to run a truck now days is not a real good investment for sure.