Union Pacific to Sell Overnite Unit in IPO
Morgan Stanley and CSFB will lead the underwriters.
Freight railroad
Union Pacific
(UNP)
registered to sell its Overnite Corp. ground freight operation to the public in an initial stock offering.
Overnite, a so-called "less-than-truckload" freight hauler, has 208 service centers, more than 6,000 tractors and 21,000 trailers. It employs more than 14,400 people and serves all 50 states.
Union Pacific will sell all the shares in the offering and would divest itself completely if the overallotment option were exercised. The shares will be offered by an underwriting group managed by Credit Suisse First Boston and Morgan Stanley.
Scroll to Continue
TheStreet Recommends
The deal comes at a time of consolidation in the trucking freight business. Last month,
Yellow Corp.
(YELL)
agreed to buy rival
Roadway
(ROAD)
.
