Unsolicited takeover of Ryder is unlikely to succeed, analyst says

May 17, 2022

Home » Unsolicited takeover of Ryder is unlikely to succeed, analyst says
An unsolicited offer made by a private equity firm to buy Ryder System Inc. undervalued the company’s true value, at a time when financial market concerns about an imminent end to the freight cycle have put downward pressure on transportation stocks, logistics sector analysts said.New York-based HG Vora Capital, which already holds 9.9% of Ryder stock, on Friday offered to buy the remaining shares of the supply chain, dedicated transportation, and fleet management provider, Ryder has confirmed. At its current stock price, Ryder has a market capitalization of about $4.4 billion.But that offer came in below the company’s true value, according to a letter to clients from the transportation industry analyst firm Baird Equity Research. “We view a near-term sale as unlikely unless takeout value rises meaningfully,” Baird Senior Research Analyst Garrett Holland said in the note. “We think the proposal undervalues the company based on its normalized earnings potential and would e ....

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