Teamsters Call on ABX Air to Protect Shareholder Interests

[rotor&wing]

Teamsters Call on ABX Air to Protect Shareholder Interests, Put Poison Pill to a Vote

September 19, 2007: 04:22 PM EST
WASHINGTON, Sept. 19 /PRNewswire-USNewswire/ -- In a letter Friday to ABX Air Chairman James Carey, the International Brotherhood of Teamsters expressed concerns that the company's poison pill has unduly insulated the Board of Directors from accountability to shareholders and urged the Board to put the company's controversial takeover defense to a vote of shareholders.
"As long-term shareholders of ABX Air, Inc. we are alarmed by recent events at our Company, and concerned that the Board of Directors has not acted objectively to safeguard shareholder value," the letter stated.
Two recent developments triggered concern that the takeover defenses of ABX Air may be detrimental to shareholder value. On July 24, ABX Air rejected an offer to acquire the outstanding shares of the company at a 10 percent premium to market value, without disclosing the fairness opinion of its financial advisors. On August 10, ABX Air announced that it would restate earnings for 2006 and first quarter 2007.
"The poison pill of ABX is the linchpin of a faulty governance structure that leaves investors no choice but to 'vote with their feet,'" the letter concludes. "The risks of this structure have materialized recently in the apparent disregard for minimum standards of disclosure, rejection of an above- market acquisition offer, and financial restatements. We urge you to correct this flawed governance structure by holding a vote of all ABX shareholders to ratify or reject the poison pill."
The International Brotherhood of Teamsters represents 1.4 million hardworking men and women throughout the U.S. and Canada including 690 ABX Air flight deck crew members.

 

[shooter]

Teamsters Call on ABX Air to Protect Shareholder Interests, Put Poison Pill to a Vote

September 19, 2007: 04:22 PM EST
WASHINGTON, Sept. 19 /PRNewswire-USNewswire/ -- In a letter Friday to ABX Air Chairman James Carey, the International Brotherhood of Teamsters expressed concerns that the company's poison pill has unduly insulated the Board of Directors from accountability to shareholders and urged the Board to put the company's controversial takeover defense to a vote of shareholders.
"As long-term shareholders of ABX Air, Inc. we are alarmed by recent events at our Company, and concerned that the Board of Directors has not acted objectively to safeguard shareholder value," the letter stated.
Two recent developments triggered concern that the takeover defenses of ABX Air may be detrimental to shareholder value. On July 24, ABX Air rejected an offer to acquire the outstanding shares of the company at a 10 percent premium to market value, without disclosing the fairness opinion of its financial advisors. On August 10, ABX Air announced that it would restate earnings for 2006 and first quarter 2007.
"The poison pill of ABX is the linchpin of a faulty governance structure that leaves investors no choice but to 'vote with their feet,'" the letter concludes. "The risks of this structure have materialized recently in the apparent disregard for minimum standards of disclosure, rejection of an above- market acquisition offer, and financial restatements. We urge you to correct this flawed governance structure by holding a vote of all ABX shareholders to ratify or reject the poison pill."
The International Brotherhood of Teamsters represents 1.4 million hardworking men and women throughout the U.S. and Canada including 690 ABX Air flight deck crew members.

:laugh: thats some funny slop right there. There must be another reason behind this to ask for something so stupid. The reason the pill is there is to prevent a hostile takeover. While some (myself not included) think that would have allowed ABX to be sold to Astar, that bid was not a hostile one. If it were, Astar would not have backed out after the first offer. (which may the problem with the Astar pilot group. Their management does not seem to know how to negotiate.) It was an offer of interest to purchase ABX. If that protection were to be removed, anyone could come in and take over ABX and even screw the shareholders. The ones responsible for such a letter should consider the absolute worst case buyout, and how it could happen without anything to prevent it from happening. All companies have some protection against this and ABX is no different.

 

[flyinboxes]

I think the IBT sees something here that they have been missing.

So it goes like this.

Hello is this Joe Hete?

yes it is.

This is Astar and we would like to offer you 500,000,000 dollars for your company, did I mention in cash?

No you didn't but we aren't interested, thanks for calling.


Thats basically how it went. With that kind of money on the table there is NOOOOOOOOOOO way its over. I don't think another offer will be made but something has got to happen and soon.

 

[shooter]

I think the IBT sees something here that they have been missing.

So it goes like this.

Hello is this Joe Hete?

yes it is.

This is Astar and we would like to offer you 500,000,000 dollars for your company, did I mention in cash?

No you didn't but we aren't interested, thanks for calling.


Thats basically how it went. With that kind of money on the table there is NOOOOOOOOOOO way its over. I don't think another offer will be made but something has got to happen and soon.

naaah, I dont think it would have went like that at all. I bet Hete would sell ABX in the blink of an eye if the offer were right. But Dasburg pulled away after the first no.