Printer Friendly

YELLOW TENDER OFFER FOR PRESTON COMPLETE

 OVERLAND PARK, Kan., Feb. 19 /PRNewswire/ -- George E. Powell III, president and chief executive officer of Yellow Freight System, Inc. (NASDAQ-NMS: YELL) of Delaware (YFSD), announced today that the YFSD tender offer for Preston Corporation (NASDAQ-NMS: PTRK) has been completed.
 An all cash tender offer of $4,125 per share for Preston Corporation's approximately 5.8 million shares outstanding terminated at midnight, EST, on Thursday, Feb. 18. A preliminary count indicates that 5,260,215 shares (91.3 percent) were tendered as of Feb. 18, exceeding the two-third requirement necessary to complete YFSD's acquisition of Preston. YFSD has accepted such shares for payment, subject to the terms and conditions of the offer, and plans to complete the acquisition promptly. The Interstate Commerce Commission's exemption of the transaction became effective on Feb. 16.
 Payment for the shares tendered totals $21.7 million and, as a part of the offer, YFSD will refinance certain Preston indebtedness of approximately $85 million and replace certain standby letters of credit of approximately $31 million.
 Preston Corporation, Preston, Md., owns Preston Trucking Company, Saia Motor Freight Line, in Houma, La., Smalley Transportation, in Tampa, Fla., and CSI Reeves, a specially carpet-hauler based in Calhoun, Ga.
 George Powell III said, "We are pleased that the tender offer has been completed. This is a significant entry into the LTL regional markets and we look forward to be opportunity of competing through these three major operating subsidiaries. This acquisition is a key ingredient in our long-term strategy to develop new growth for the corporation and increase shareholder value."
 Powell emphasized that the Preston Corporation subsidiaries will operate separately and independently.
 "We recognize that this opportunity comes with significant business challenges because of the recent unprofitable performance of Preston Trucking Company. At the outset, we said we would make the necessary adjustments to turn around the Preston Trucking operation and we intend to do so."
 Powell announced that he has been elected chairman of Preston Corporation and that Mr. Leo Suggs will serve as president of Preston Corporation and Preston Trucking Company. Suggs, a former senior vice president of corporate development for YFSD, most recently led the group responsible for the due diligence at Preston. His appointment is effective immediately.
 Dave Elson, a 30-year veteran of the transportation industry, will join Preston Trucking Company on March 1 as senior vice president responsible for sales and operations.
 The former chairman of Preston Corporation, William Potter, and the former President of Preston Trucking Company, William Terrell, resigned upon completion of the acquisition.
 A turnaround plan for Preston Trucking Company will be announced to employees and customers within the next few weeks, according to Suggs.
 "We pledge to customers that the quality and service performance of Preston Trucking will remain high while the turnaround plan is implemented. We recognize the urgent need to restore Preston Trucking to financial health and will quickly outline and execute plans to assure the company is competitive and profitable," Suggs said.
 YFSD reported operating revenues of $2.2 billion in 1992. Preston Corporation reported revenues of $581 million in 1992. The Overland Park-based holding company has subsidiaries specializing in longhaul LTL transportation, regional LTL transportation, logistics management and transportation-related technology services.
 -0- 2/19/93
 /CONTACT: Linda George of Yellow Freight System, Inc. of Delaware, 913-967-4383/
 (YELL PTRK)


CO: Yellow Freight System, Inc.; Preston Corporation ST: Kansas IN: TRN SU:

LR-OS -- NY053 -- 8488 02/19/93 15:22 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 19, 1993
Words:571
Previous Article:SOCIETY FOR SAVINGS AUCTIONS $26.5 MILLION OF COMMERCIAL REAL ESTATE LOANS
Next Article:MONEY SMALL INVESTOR INDEX: SMALL INVESTORS WIN WITH MUNI BONDS
Topics:


Related Articles
YELLOW HOLDING COMPANY TENDERS OFFER FOR PRESTON CORPORATION
PRESTON CORPORATION TO BE ACQUIRED BY YELLOW FREIGHT SYSTEM, INC. OF DELAWARE
YELLOW FREIGHT EXTENDS PRESTON TENDER OFFER
YELLOW FREIGHT EXTENDS PRESTON TENDER OFFER TO FEBRUARY 18
YELLOW CORPORATION ANNOUNCES FIRST QUARTER RESULTS
Jevic Transportation Inc. Agrees to be Acquired For $14 per Share in Cash.
Yellow Corporation Makes Tender Offer to Acquire Jevic Transportation, Inc.
Yellow Corporation Completes Tender Offer to Acquire Jevic Transportation, Inc.
Yellow Freight System to Assist Preston Customers.
Yellow Names President of Regional Carrier Group; Names New Corporate CFO.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters