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FedEx Buys Freight Hauler

By TSC Staff
5/26/2006 3:27 PM EDT

Package-shipping concern FedEx (FDX:NYSE) has agreed to acquire the less-than-truckload operations of Watkins Motor Lines in a bid to bolster its position in the heavy-freight arena.

The deal is worth $780 million. Watkins Motor Lines, a privately held company based in Lakeland, Fla., will be renamed FedEx National LTL and operate as a separate division within the FedEx Freight segment. FedEx doesn't expect the deal to have a material effect on its fiscal 2007 financial results.

This might be one reason why YRCW's stock price has been weak in the last few days. I saw one analyst comment that this move by FDX to expand its LTL segment could increase competitive pressure on both YRCW and ABFS...

JT :-)

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