By Tyson Fisher, Land Line staff writer
XPO Logistics’ plan to acquire Con-way for $3 billion may not be a sure thing. One day after news of the deal broke, Moody’s Investors Service announced that XPO’s ratings would be under review for a possible downgrade. XPO has a current rating of B1, which is considered a “high credit risk,” according to Moody’s website.
Moody’s announcement was a direct response to XPO’s plans to acquire Con-way, which would be the second multibillion-dollar acquisition for XPO this year. Back in April, XPO bought Norbert Dentressangle, a European transport and logistics company, for $3.5 billion.
Moody’s review questions XPO’s ability to integrate both Con-way and Norbert Dentressangle without burying itself in excessive debt. Currently, four classes of ratings are under review, all of which are already at a high-risk B1 rating. XPO’s outlook, currently ranked as “stable,” will also be under review.
A document dated Sept. 17 on Moody’s website suggests that XPO’s plan to acquire Con-way is “credit negative.” A similar document dated April 28 declared the same “credit negative” status for the Norbert Dentressangle acquisition. XPO announced plans to purchase Norbert on April 27 and officially completed the deal on June 8, according to XPO’s website.
Relatively new to the game, XPO Logistics began in 1989 as Express-1 Expedited Solutions and was purchased by Segmentz in 2004. XPO completed its first acquisition in 2008 with Concert Group Logistics for $9 million in cash and the issuance of 4.8 million shares of XPO stock. Since then, XPO has acquired nearly 20 companies, with six of those in 2013 alone.
According to the New York Stock Exchange, XPO’s stock has been steadily increasing since 2010. XPO stock reached its peak in May at $50.56 a share. Since then, the price has plummeted more than 40 percent. At press time, XPO stock was priced at $29.21, nearly 6 percent lower than the opening price for the day.
Moody’s announcement was a direct response to XPO’s plans to acquire Con-way, which would be the second multibillion-dollar acquisition for XPO this year. Back in April, XPO bought Norbert Dentressangle, a European transport and logistics company, for $3.5 billion.
Moody’s review questions XPO’s ability to integrate both Con-way and Norbert Dentressangle without burying itself in excessive debt. Currently, four classes of ratings are under review, all of which are already at a high-risk B1 rating. XPO’s outlook, currently ranked as “stable,” will also be under review.
A document dated Sept. 17 on Moody’s website suggests that XPO’s plan to acquire Con-way is “credit negative.” A similar document dated April 28 declared the same “credit negative” status for the Norbert Dentressangle acquisition. XPO announced plans to purchase Norbert on April 27 and officially completed the deal on June 8, according to XPO’s website.
Relatively new to the game, XPO Logistics began in 1989 as Express-1 Expedited Solutions and was purchased by Segmentz in 2004. XPO completed its first acquisition in 2008 with Concert Group Logistics for $9 million in cash and the issuance of 4.8 million shares of XPO stock. Since then, XPO has acquired nearly 20 companies, with six of those in 2013 alone.
According to the New York Stock Exchange, XPO’s stock has been steadily increasing since 2010. XPO stock reached its peak in May at $50.56 a share. Since then, the price has plummeted more than 40 percent. At press time, XPO stock was priced at $29.21, nearly 6 percent lower than the opening price for the day.
WE NEED THE UNION,WE NEED THE TEAMSTERS
ReplyDeleteWell hope they don't sell becouse in Laredo our manger Ted garcia told us this is a business and we are a number to the company when it come to money the company will do what it's rt for the investors
ReplyDeletePeople better get their life vest on because.Conways bottom is about to drop.If you people think nothing is going to change at all or for a year.Well then keep trusting on Conways bull shit.But if any of you have any smart well.See how things have already started to change...Read it for yourselves...
ReplyDeleteForm 8-K for CON-WAY INC.
ReplyDelete24-Sep-2015
Temporary Suspension of Trading Under Registrant's Employee Benefit Plans, Financial
Item 5.04. Temporary Suspension of Trading Under Registrant's Employee Benefit Plans.
On September 24, 2015, Con-way Inc. ("Con-way", the "Company" or "we") delivered to its executive officers and directors (collectively, the "Covered Persons") a notice under Rule 104(b)(2)(i) of Regulation BTR, pursuant to which Con-way may be imposing a "blackout" period in accordance with Section 306(a) of the Sarbanes-Oxley Act of 2002 ("SOX") and the Securities and Exchange Commission regulations.
Because a blackout period has been imposed under the Con-way Personal Savings Plan, the Con-way 401(k) Plan and the Con-way Retirement Savings Plan (collectively, the "Plans"), beginning on October 9, 2015, and ending on the date the Plans receive and allocate the tender offer consideration described below to Plan accounts, we may be imposing a SOX blackout period beginning on October 9, 2015, and ending on the date the Plans receive and allocate the tender offer consideration described below to Plan accounts in the event that 50% or more of participants in any of the Plans who hold shares of our common stock in such Plan will actually participate in the Tender Offer (as defined below). During the blackout period, tendering participants will be unable to engage in transactions, such as obtaining loans or distributions from, or diversifying or otherwise changing, the portion of their account balances invested in the Company's common stock. We will advise the Covered Persons when the SOX blackout period ends, if earlier or later than the specified date. The blackout period under the Plans is needed in connection with the process of exchanging shares of common stock of the Company under the Plans for cash as part of the tender offer commenced by Canada Merger Corp., a wholly-owned subsidiary of XPO Logistics, Inc. on September 15, 2015 (the "Tender Offer") in accordance with the terms and conditions of the Agreement and Plan of Merger by and among the Company, XPO Logistics, Inc., and Canada Merger Corp. (the "Merger Agreement").
While the SOX blackout period is in effect, the Covered Persons (and their immediate family members who share their residence) should not, directly or indirectly, engage in any purchase, sale, transfer, acquisition, or disposition of any equity securities of the Company relating to the Company's common stock and any options with respect to any of these stocks. There are limited exclusions and exemptions from this rule. For example, transactions that are executed pursuant to a properly adopted Rule 10b5-1 plan are exempt from the foregoing SOX blackout trading restrictions. Further, the above prohibition is in addition to other restrictions on trading activity that the Company imposes on its executive officers and directors, including under the Company's insider trading policy and any administrative blackout related to the Company's online incentive award platform.
The Company provided the SOX blackout notice to the Covered Persons on September 24, 2015. The SOX blackout notice is filed herewith as Exhibit 99.1.
If the Covered Persons have any questions pertaining to the notice or the SOX blackout period, they were directed to contact Stephen K. Krull in the Legal Department of the Company by telephone at (734) 757-1559 or by mail at 2211 Old Earhart Road, Suite 100, Ann Arbor, Michigan 48105.
I'm not arguing against the union, but the union can't stop a company from closing
ReplyDeleteThen start petitions to invite the union at your terminal get some signatures on paper see if these brain dead brain wash senior drivers will sign on.I bet you get less then 15 percent of them to sign on
ReplyDeleteKinda reminds me how yrc bought all those companies then tanked almost went under mismanagement.
ReplyDeleteThanks the teamsters for saving 30,000 jobs at yrc,if it wasn't for the teamsters getting involved in the yrc,corp mismanagement yrc drivers who are stiil bitching about the teamsters not doing anything for them, those fuck'n yrc drivers still have a job and their pension.
DeleteIn NOF my manager says we all should be looking for a back up plan because of uncertainty.
ReplyDeleteAt least your manager has the integrity and commitment in telling you the truth about whats going on.All the other managers are covering the corporations ass.They'll acting like everything is golden.But I would take your managers warning very serious.Nothing is certain at Conway.All they care about is about the 3.5billion spent on buying Conway.I hope Xpo buys Conway, then goes bankrupt.It'll make a good horror story for the next generation of Dumb asses and kiss asses.THERE IS NO FUTURE IN THIS INDUSTRY.AT LEAST WITHOUT REPRESENTATION.
DeleteXpo stock closed at 23 down from a high of 50, not good , xpo may have a buyer wating to buy us and they get Menlo, thats who they wanted anyway. Cool if Burlington northern railroad got us.
ReplyDeleteOnly if ups can buy us make teamster that much stronger for three billion teamsters should buy it outright and let the employees run it we do it now why the fuck we need high paid thieving ceo to run this company. All they do is give themselves high salaries and steal and so does Wall Street!!!!
ReplyDeleteConway driver look at what we do we load the freight we break the freight to were its moving,we pick up the freight we fix the freight when it comes apart we do the paper work in the freight we even dispatch ourselves,is there nothing a Conway driver doesn't do when it comes to the trucking industrie?no we do it all and how are we compensated?by making less then most truck drivers Conway has fucked us long enough!!!!
ReplyDeleteWhichever union company would be great then we could negotiate a good contract, these dumb fucks we work with believe only mgt should have a contract , then they complain about union dues, they say they are not paying for a job, that statement itself shows there ignorance, it's about representaition that's what the union does represente us the members, do they expect representation for free, lets start with politicians we pay thru taxs for representation, the same with police and fire department, and guess what that all boils down to yes you guessed it PROTECTION , POLITICIANS PASS LAWS TO PROTECT US , OR FOR LAW BREAKERS GO TO JAIL AND OR FINES OR SOMETHING AND YOU DUMB FUCKS SAY I WONT PAY FOR PROTECTION WELL GUESS WHAT YOU ARE A DAMN LIER BECAUSE THRU TAXS YOU DO PAY FOR ALL OF THE ABOVE , BUT BEING REPRESENTED BY THE UNION AT LEAST YOU KNOW THERE IS FAIRNESS AT YOUR JOB , LIKE WAGES AND INSURANCE AND ETC,ETC,ECT , THINGS WE ACTUALLY HAVE SAY IN BY VOTING, YOU DO NOT HAVE THAT WITHOUT UNION REPRESENTATION , SO I REST MY CASE, VOTE UNION FOR THE CHANCE TO HAVE A SAY IN WHAT YOU EARN.
ReplyDeleteMr. Administrator, I am a union member at FedEx Freight. As I see it, Conway is in the same situation as Cablevision. Cablevision was sold to Altice for $17.7 billion. It don't look good for the Cablevision workers. But only the workers that voted the Union in are protected. Here is a video clip of what the Brooklyn Union workers are saying. I hope Conway drivers will realize that without a union you have no protection. Don't wait until it's too late. Good luck to you all and God Bless…………………… https://www.youtube.com/watch?v=YJxPy8RPhmg&index=51&list=PLE6BCEE65D356E57A
ReplyDeleteAnyone else seen the XPO Advisors and Analysts wondering around there location Yet?I saw 4 of them in our location,and All of them had their note pads out.SO IF YOU PEOPLE WEREN'T WORRIED BEFORE ,WELL YOU SHOULD BE WORRIED NOW.TIME IS RUNNING OUT FOR SOME.
ReplyDeleteIn USB
ReplyDeleteNot sure have not heard anything yet I am a ULB driver and we never hear anything about whats going on. We have to get our information from other terminal when we go to them. Our SCM never tells us anything he just sits in his office all day.
ReplyDeleteYour SCM if from USB. All he cares about is numbers. He could care less about you or anyone else there. As long as his numbers look good that's all he cares about. Oh and kissing Pat's ass. Everyone knows that's the only reason he got that position. Are you on the DL about signing the Union cards?
DeleteYes USB is full of pussy DSR
ReplyDeleteHey guys I'm a road driver from fedex freight. I'm in one of the 4 centers that voted the union in. Right now we Are tied up in circuit court. We should have a ruling in December or January. We are all truck drivers and feel your pain with the buyout of your company. But we all need to come together if we are going to beat these monster companies. You will start to see more of fedex guys posting on your page and I would hope you guys do the same with our page "Bring the teamsters to fedex freight" on fb. Thank you.
ReplyDeleteTogether we can change this industry and this country's economy.
DeleteWtf? Xpo conway deal failed!!!
ReplyDeleteWell it looks like xpo aint taking over, I DONT SEE ANY XPO BIG SHOTS COMING OVER TO MIAMI FL CENTER, IT LOOKS LIKE XPO CONWAY DEAL BACKFIRED ON THEIR ASSES.
ReplyDeleteXpo conway deal still not going through, conway investors hired attourneys, i think GODS HAND, IS PROTECTING DRIVERS, AND PUNISHING THE UNJUST.
ReplyDeleteConway miami fl, TEAMSTERS STRONG, WELL?? WHERE ARE THE XPO BIG SHOTS, SURELY, I DONT SEE ANY OF THEM IN MY CENTER, XPO CONWAY DEAL BACKFIRED ON COMPANYS ASSES, WHERE THEY TRYING TO GET RID OF THE UNION??? WELL GOOD LUCK WITH THAT, CONWAY!!
ReplyDeleteI'm a former conway employee. Myself and a few few other guys at my barn started the union drive. I got cards signed, I went to union meetings, spoke out against management, anti union coworkers and the union busters. I signed a notice of organizing a union and had it sent to my SCM. I fought the good fight for the union. But I was fired from conway on trumped up chargers. The union I supported filed a nrlb case with a shit load of evidence to support me in getting my job back but the nlrb sided with conway. The union I supported did have me work with them for a few months while waiting to see what happened with my nlrb case so I did have money coming in. The union did have my back I can say that. But I don't have any faith in the nlrb and I think the union handled the organizing of my former conway barn very poorly. I don't think the union has the man power or knowledge to go after LTL companies such as conway and FedEx. Needless to say I work for FedEx freight now but I don't think I'd do it again and try to get the union at my new FedEx barn. Not because I don't believe that the union isn't best for the working man and the company has my best interest at heart but because I don't believe the union knows how to get it done against these big powerful LTL companies and no backing from the nlrb I just can't be another casualty in the war union vs company. I have nothing but respect for the union and my fellow coworkers that stuck their necks out as I did in tying to get a union at Conway but speaking from the front line and have been through the war and seeing both sides of it till I see a better plan from the unions on going after these companies I'll be laying low at FedEx freight.
ReplyDelete
ReplyDeleteLOW-ROAD EMPLOYERS:
"If we're serious about going after 'welfare queens' in the US, to use Ronald Reagan's phrase, let's start by going after the corporations and industries that use the Walmart business model of paying such low wages that their employees qualify for welfare benefits. We need to stop rewarding businesses for screwing over their employees."
—Thom Hartmann, TruthOut
Forget about any frigg'n welfare bullshit. What about corporations that pay NO income tax & then get a rebate from our money! One year Exxon not only did no pay any taxes they got four hundred million back. This is the REAL welfare problem!!!
ReplyDeleteUnion all the way.
Watch your politicians. Are they fighting for workers or corporations and the 1%? Unions 4 Workers
ReplyDeleteUNION POWER: "Skilled workers build our homes, teach our kids, keep our streets safe, and maintain our roads and bridges. In Missouri, skilled union labor builds the best-selling truck in America, the Ford F-150, and the 2015 Motor Trend Truck of the Year, the Chevy Colorado. Union hands build the F/A-18, the nation’s first strike-fighter that continues to fight terror and protect our servicemen and women around the globe. Today, with our economy driven by the strength of the middle class, giving workers the freedom to make their voices heard is more important now than ever before." — Governor Jay Nixon (D-MO)
ReplyDeleteUNION RIGHTS ARE WORKER RIGHTS:
ReplyDelete"The biggest service that unions provide to their members is the ability to use collective bargaining in negotiating with management. This is not anti-American at all, but is the very essence of the right of all citizens to join forces for their common good. It is a method that has been used by the disenfranchised since the beginning of time to fight for their rights, and is often the only recourse that they have." — Sanjay Sanghoee, author
UNION VS NON-UNION:
ReplyDelete"The vast majority of American workers aren’t union members. They’re 'at-will' employees, with no legal right to be treated fairly at work. In fact, most Americans can be punished, even fired, for being too attractive, or too short, or having the wrong politics — or for no reason at all. But don’t employers need a good reason to fire people? If you’re in a union, then the answer is yes. Generally speaking, union workers can be fired only for 'just cause,' so there has to be a good reason. But nonunionized, at-will workers can be fired for bad reasons, or no reason at all." — Evan Horowitz, The Boston Globe
Illinois governor trying to get rid of unions and collective bargaining of course he is a billionaire right wing repuplican which the poor people of Illinois voted him in so he can screw them with the laws he will change that are anti union and anti middle class.keep voting in these rich low lifes that don't care about the middle class.ask yourself this question why would a billionaire want to be governor?the job only pays 170 thousand dollars a year.its so he can pass laws that favor the corporations that they own.
ReplyDelete