Forward Air to call off Omni Logistics deal?

SEEKING ALPHA writes:

Forward Air Corp. (NASDAQ:FWRD) surged 16% in premarket trading after the company said it’s considering exercising its right to terminate its ~$3.2 billion merger agreement with Omni Logistics.

[Editor’s note at the time of publishing, pre-market: NOT SO FAST…]

Forward Air (FWRD) said it believes the closing condition contained in a section of the merger agreement hasn’t been satisfied, and Forward will not be obligated to close the deal, according to a statement on Thursday.

Forward Air (FWRD) also announced that a judge in Tennessee didn’t grant the plaintiffs’ request for a temporary injunction relating to certain transactions contemplated by the merger agreement and ordered that the TRO was dissolved…

The full post is here.

The full release is here.

If this is right, it looks like we were wrong with regard to the possible outcome: our latest take is here.

Some you win, some you lose…

Ahead of trade, stock up (only) +5.36% to $76.90 after the initial spike in pre-market…

Up +2.1% in early trade…

Down -1.55% to $71.86 at the end of the session in a weak market.

Good ride.

Oh.

And here’s the reply from Omni to Forward Air: “Omni has fully complied with all the required provisions of the Agreement and Plan of Merger between Omni and Forward Air dated August 10, 2023 (the “Merger Agreement”). Any attempt by Forward Air to suggest otherwise is unfounded and has no basis. Omni believes the Merger Agreement is legally binding and intends to enforce the Merger Agreement and close the transaction as expeditiously as possible.”

Plus, of course, Ancora had their say: “We are very pleased with Forward Air’s decision to be transparent with shareholders by disclosing its belief that Omni has not complied with aspects of the previously announced merger agreement. In light of this, we – and presumably a critical mass of our fellow shareholders – fully support leadership’s decision to explore a termination of the merger agreement.”