WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the Board of Directors of Swift Transportation Company (“SWFT” or the “Company”) in connection with their approval of the proposed the merger of the Company with Knight Transportation, Inc. (“KNX”). Under the terms of the agreement, SWFT shareholders will receive 0.72 of a share of the newly combined company for each share they own; representing consideration of $22.07, based on KNX’s April 7 closing price. Conversely, shareholders of KNX will enjoy a one-for-one exchange ratio where each share of KNX will be converted for a share of the newly combined company.
WeissLaw is investigating whether SWFT’s Board acted to maximize shareholder value prior to entering into the agreement. Notably, the per-share consideration is $5.11 lower than the Company’s 52-week high of $27.18, and nearly $8.00 lower than the analyst target price of $30.00. Additionally, shareholders of SWFT will own a mere 54% of the combined company, a position which Aegis Capital Corp analyst Jeffrey Kauffman affirms “feels light  despite [SWFT] contributing 77% of the consolidated revenues and approximately 67% of the consolidated EBITDA;” SWFT reported annual revenues of $4.03 million for fiscal year 2016, nearly three and a half times larger than the $1.11 million reported by KNX in the same year.
Given these facts, WeissLaw is investigating the Board of Directors’ decision to sell SWFT and whether SWFT shareholders will obtain their fair and proportionate share of the Company’s continued success and future growth prospects. If you own SWFT shares and would like more information about your rights or our investigation, or if you have information to share with us, please contact Joshua Rubin by telephone at (888) 593-4771 or by email at firstname.lastname@example.org.
WeissLaw LLP has litigated hundreds of stockholder class and derivative actions for violations of corporate and fiduciary duties. We have recovered over a billion dollars for defrauded clients and obtained important corporate governance relief in many of these cases. If you have information or would like legal advice concerning possible corporate wrongdoing (including insider trading, waste of corporate assets, accounting fraud, or materially misleading information), consumer fraud, or anti-trust violations, please email us at email@example.com or fill out the form on our website, http://www.weisslawllp.com/swift-transportation-company-swft/