Summary
Union Pacific Corporation (UNP) announced on October 15, 2001, its intention to acquire Motor Cargo Industries, Inc. (MCI) through a merger agreement. This strategic move signals Union Pacific's expansion within the transportation sector, aiming to integrate MCI's operations into its own. The acquisition will be executed via an exchange offer where MCI shareholders can elect to receive either 0.26 shares of Union Pacific common stock or $12.10 in cash for each share of Motor Cargo stock they hold. A significant portion of MCI's shares, approximately 62.5%, are already committed to this exchange offer by major shareholders Harold P. Tate and Marvin L. Friedland, indicating strong support for the transaction. Following the exchange offer, MCI will be merged with a Union Pacific subsidiary, with remaining MCI shareholders to receive $12.10 per share.
Key Highlights
- 1Union Pacific Corporation is acquiring Motor Cargo Industries, Inc. (MCI).
- 2The acquisition will be conducted through an exchange offer and a subsequent merger.
- 3MCI shareholders have the option to exchange their shares for Union Pacific stock (0.26 shares per MCI share) or cash ($12.10 per MCI share).
- 4Key MCI shareholders, Mr. Harold P. Tate and Mr. Marvin L. Friedland, who collectively own approximately 62.5% of MCI, have agreed to tender their shares.
- 5The transaction is structured to include an exchange offer followed by a merger, ensuring all MCI shareholders will participate.
- 6A joint press release was issued by both companies on October 15, 2001, to announce the agreement.