Discussion in 'XPO Logistics' started by smokin'joe, Jan 15, 2020.
And so it begins .....
"We don't intend on selling off the North American LTL unit."
They said the same to about truckload before they did . They don’t want to set a panic in motion.
We can post all kink of links here about this. The consensuses is XPo is exploring sale or spin-off. It not uncommon for companies to do this. Take a look at yourself and see what's working and what's not. The thing here is XPO is a highly watch stock so any little thing is big news. The one thing is they have alot of division to look at
from the article
"The banks have been “mandated to run four simultaneous auction processes” for XPO’s European transportation and supply chain units, its supply chain business in the Americas and the Asia-Pacific regions and the company’s North American transportation unit, excluding its less-than-truckload business, XPO Chief Executive Bradley Jacobs said in an interview."
“We may not sell all four, we may sell none,” said Mr. Jacobs.
Should all the businesses end up being sold, he said, “I would still be CEO, but I would be CEO of a fast-growing, pure-play LTL company with a lot of liquidity.”
He can’t get traction on Wall St
Possibly bitten off more than he can handle.
Ya think ! He’s is liquidating before he exits . G a u r a n t e e d . The parts are worth more than the whole !
As far as Ltl he doesn’t want a panic that might cause you guys to run and organize to protect what you in the sale. The stock will be near a 100.00 a share on the news. Money money money... money . Some people got have it ....
I bet the guys at Truckload thought they were safe when he said the same thing right before their sale .
You guys are playing checkers why this guys playing chess . His lips are moving but don’t believe a word he’s says.
He wants more value of xpo stock by spinning off possibly 4 xpo segments as stand alone separate companies thus creating more value for the remaining segments.
When asked by mad money Jim Cramer if a deep pocketed corporation offered $10b or more for the whole shooting match... would he sell it. Jacobs digressed by responding that he couldn’t or wouldn’t go there. Maybe that’s his plan... to lure a potential buyer to scup up the whole company as is b4 he breaks it up.
Couldn’t continue his roll up strategy so he was left no option . It takes too long to make money organically the traditional way .
Ltl is the only entity that he has to keep people in place through this process and he definitely doesn’t want guys calling the union in to protect what they have now in an impending sale . That would not go well for prospective buyers .
The lack of reinvestment in the equipment and brick and mortar is and has always been a clue that he never intended to keep this long term .
Look even your great CCX did grown the traditional way either
True Sucker... so perceptive, the Union factor totally escaped me on why he may want to hold xpo LTL close to the vest and maybe play them later somehow after the union threat is gone.
Just speculating !
Yes we d
yes we did for many years until the competition caught up to us.
Not so much worried about the current amount of terminals being union but what if many more got wind of a potential buyout was eminent they could run to the union to protect themselves in a buyout.
Plus particularly in Ltl customers will pull freight in uncertainty which would be disastrous.
But you don't have a contract with XPO right now, you are in talks. So if XPO sold the LTL part as far as I read the new owner would not have to abide anything the teamster or XPO have agree on. Now if you had a signed contract then that's a different story.
the whole interview is the second video
Again , status Quo . 2 Conway terminals were union when Xpo bought Conway out .
You can’t no sell or close a facility just to get rid of a union.
Let’s say Amazon buys us tomorrow and they want to take you guys down 10% in pay . Guess what . I doesn’t affect us .
He’s is liquidating the business to maximize his profits . Couldn’t make a go of it in his usual strategy of doing a roll up . It’s the only option now. The individual units are worth more each right now than holding out and hoping the stock will run up . I’m sure they looked at every scenario and decided this was the best move.
As far as holding onto Ltl our reputation that we’ve built over the years has done nothing but deteriorate under Xpo . We once flourished on our solid reliable service . The cutting and gutting has taken a terrible toll on us . I’m sorry if I’m skeptical that it will improve or that they have the ability to restore us back to a premier carrier . The O/R is only what it is because of the cut and gut management.