Swift Soars on Buyout Bid

Former CEO Jerry Moyes is looking to take the trucking company private for $29 a share.
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Swift Transportation

(SWFT)

received an offer from former Chairman and CEO Jerry Moyes to take the trucking company private for $29 a share.

The company said Monday that it formed a special committee to evaluate the proposal.

The $29 bid represents a 21% premium over Swift's closing price of $24.05 Friday. The stock has traded at a 52-week range of $18.80 to $33.66.

Shares of Swift recently were surging $5.90, or 25%, to $29.95.

Moyes, who owns about a 27% stake in Swift and still serves as a director on the company's board, said in a letter to the company's chairman that he has received a written commitment from Morgan Stanley for the entire amount of debt financing necessary to complete the deal.

He also said he would consider an increased buyout price.

"As part of the due diligence, I am prepared to consider any factors that you believe justify a higher purchase price, and, upon the completion of due diligence, I may be willing to increase my proposed price," Moyes said.

Moyes said the proposal is effective through Nov. 20.