InsideArbitrage Potential Deal Alert: Activist Ancora Pushes Forward Air (FWRD) to Consider Sale

POTENTIAL DEAL DETAILS

Reuters reported that activist investor Ancora Holdings is urging Forward Air (FWRD) to launch a strategic review and consider a sale, and it warned that a board challenge might follow if investors’ calls for action are ignored.

Ancora, which owns a 4% stake in the freight forwarding company, said in a letter to the board, that improving operations, fixing the balance sheet, and serving customers would be better achieved as a private company.

Earlier this year, activist investor Irenic Capital Management, which owned a 3.9% stake in Forward Air at the end of June, called for a strategic review in a private letter to the company.

“In the event such overwhelming consensus is ignored, we expect there will be a formidable campaign to replace several members of the Board – particularly those who pushed through this year’s disastrous acquisition – at the 2025 Annual Meeting of Shareholders,” the letter said.

Forward Air Corp. Investor Relations

Update(s):

August 20, 2024: Ancora Holdings Group, LLC issued an open letter to the Board of Forward Air (FWRD) to initiate a strategic review process to maximize shareholder value.

October 7, 2024: Alta Fox Capital Management, which owns 3% of the outstanding common shares of Forward Air (FWRD), sent a letter to the Board asking for a strategic review and to execute a formal sales process that maximizes value for all shareholders.

Forward Air announced that it has recently undergone a refresh of its Board and management team, and is focused on executing its strategic plan with a sense of continuous improvement, transparency, and accountability. The Board is actively analyzing the business and strategy to ensure the Company pursues the best way to enhance shareholder value.

Disclaimer: Our intent with this section of the website is to present potential deals that appear to be in the pipeline. These potential deals are ones where i) the company has indicated that it is "seeking strategic alternatives", ii) there has been an unsolicited bid for a company as mentioned in a press release by the company or iii) news about the deal has been published by a leading news organization like The Wall Street Journal, The New York Times, Bloomberg, Financial Times, The Washington Post, Reuters and The Associated Press. As best as possible we will try to avoid baseless rumors. There is a high probability that many of these potential deals may not materialize and if they do, the terms of the deal may be different from what was initially reported. Please do your own due diligence before buying or selling any securities mentioned on this website. We do not warrant the completeness or accuracy of the content or data provided.