Moyes bid for Swift -- from insider trading to buyout master

Posted Nov 7th 2006 1:49PM by Tom Taulli
Filed under: Deals, Private Equity

With oil prices still fairly high and signs of a slowing economy, it does not seem likely for the second largest trucking company to be the target of a buyout.

And that's exactly what has happened to Swift Transportation Co. Inc. (NASDAQ: SWFT). There is now an offer for $29 per share. The offer came yesterday from Swift's former CEO, Jerry Moyes. He is also the company's largest shareholder.

Why is he no longer CEO, you might ask. Well, he had to pay a settlement regarding insider trading allegations (I guess he's a bit of a stock junkie). Interestingly enough, I guess he may be back in charge.

As is the case with any savvy negotiator, it looks like his initial volley is a low bid. After all, Swift's stock price surged $5.79 in yesterday's session to close $0.84 above the buyout price. In other words, investors are betting that the bid will be hiked.

Tom Taulli is the author of various books, including the Complete M&A Handbook and operates InvestorOffering.com.

Tags: Buyout, Jerry Moyes, JerryMoyes, swft, Swift Transportation, SwiftTransportation