SCS, Major Investor Settle Dispute
CS Transportation, the owner of two less-than-truckload carriers, settled a dispute with one of its major investors by placing a new member on the SCS board of directors, the two parties said Thursday.
Under the terms of the agreement, Jeff Ward, a vice president of transportation consulting firm A.T. Kearney Inc., joins the board immediately and will stand for a three-year term as an incumbent at the SCS annual meeting on April 20.
“The board of directors is committed to enhancing value for all SCS Transportation stock-holders,” Douglas Rockel, lead independent director on the SCS board said in a statement.
Saia Motor Freight is SCS’s other trucking company. According to SCS’s published earnings statements, Saia, a conventional, regional LTL, is the more profitable of the two.
Starboard had wanted SCS to sell Jevic and concentrate on Saia. However, SCS Chairman and Chief Executive Officer Bert Trucksess did not want to be compelled to do that immediately.
Trucksess has said Jevic’s profitability is “unacceptable,” and the corporation has hired investment banking firm Morgan Keegan & Co. to plan strategy on what to do with Jevic and the rest of SCS.
“We are pleased that this matter has been resolved in a manner that serves the best inter-ests of all SCS Transportation stockholders,” Trucksess said in the same statement.
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