Robbins LLP: Acquisition of Swift Transportation Company (SWFT) by Knight Transportation, Inc. (KNX) May Not Be in Shareholders’ Best Interests
Robbins LLP is investigating the proposed acquisition of Swift Transportation Company (NYSE: SWFT) by Knight Transportation, Inc. (NYSE: KNX). On April 10, 2017, the two companies announced the signing of a definitive merger agreement pursuant to which Knight will acquire Swift. Under the terms of the agreement, Swift shareholders will receive 0.72 shares of the combined company for each share of Swift common stock, the equivalent value of which is $22.07 based on the closing price of Knight shares on April 7, 2017, the last trading day before the deal was announced.
Is the Proposed Acquisition Best for Swift and Its Shareholders?
Robbins LLP’s investigation focuses on whether the board of directors at Swift is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, the $22.07 merger consideration represents a premium of only 8.70% based on Swift’s one week average closing price for the period ending on April 7, 2017. This premium is significantly below the average one week premium of nearly 30.99% for comparable transactions within the past five years. Further, the $22.07 merger consideration is significantly below the target price of $30.00 set by an analyst at Aegis Capital Corp. on January 27, 2017, the target price of $30.00 maintained by an analyst at Stephens Inc. from December 6, 2016 to April 11, 2017, and the target price of $29.00 set by an analyst at UBS on January 27, 2017. In the last three years, Swift traded as high as $29.44 on December 5, 2014, and most recently traded above the merger consideration – at $22.15 – on March 2, 2017.
Swift shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information.
Swift shareholders interested in information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, or you can complete the form below and we will contact you directly.