Home Market News Forward Air Sees Gains as Activist Investor Pushes for Termination of Omni Logistics Deal

Forward Air Sees Gains as Activist Investor Pushes for Termination of Omni Logistics Deal

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Forward Air Sees Gains as Activist Investor Pushes for Termination of Omni Logistics Deal

Forward Air, the logistics services provider (NASDAQ:FWRD), experienced a 4% increase in its share price as activist investor Ancora Holdings argued against the company’s planned purchase of Omni Logistics. Ancora Holdings, a shareholder in Forward Air since mid-2020, asserts that the Omni acquisition was intentionally structured to avoid a pre-closing shareholder vote.

Ancora Holdings, in a presentation given at the 13D Monitor Active-Passive Summit in NYC, highlighted the substantial earnings quality risk introduced by the Omni deal, as a significant portion of its EBITDA is addback-related. The announcement of the acquisition on August 10th led to a 25% drop in Forward Air’s shares on August 11th, accompanied by downgrades from at least three Wall Street firms. Ancora also emphasized the high probability of a court ruling in favor of a lawsuit that would require the company to hold a pre-closing shareholder vote on the Omni deal.

Forward Air responded to the Ancora presentation, stating that they are aware of it and are in regular communication with all of their investors. They also expressed their commitment to driving long-term value for shareholders, employees, and customers. Ancora believes that if shareholders reject the Omni deal and vote to replace the board and management at a special meeting, Forward Air’s shares could increase to $100 within the next six months. Under a revamped board, Ancora estimates that the share price could even reach $140-$145 in the immediate term.

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