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Report: UTi Worldwide Might Get Sold To DSV A/S

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UTi Worldwide Inc. (NASDAQ: UTIW) jumped more than 20 percent Wednesday on a report the company might get acquired by Danish transport giant DSV A/S.

UTi has discussed a deal with DSV for about six months and could reach an agreement with DSV before year-end, according to unnamed sources cited by Bloomberg.

Despite the price jump, shares of the freight forwarder are down 21 percent year-to-date.

UTi faced severe liquidity problems earlier this year and completed a recapitalizing plan in March.

UTi said at the time the actions would provide "sufficient liquidity to fund our business through at least fiscal 2015.”

The financing included a $400 million private placement of convertible notes as well as the sale of $175 million of preferred shares to its largest investor, P2 capital.

UTi changed hands recently at $13.85, up 20.7 percent.

Posted-In: BloombergM&A News Rumors

 

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