USF shareholders OK sale of firm

KANSAS CITY, Mo. -- Trucking company USF Corp. said Monday that a majority of its shareholders approved selling the company to Yellow Roadway Corp. for $1.37 billion in cash and stock.

The deal is expected to be closed today, USF said in a news release.

USF, based in Chicago, said that 99.5 percent of votes cast favored the acquisition and 61.5 percent of shareholders voted. Following the closing, USF shareholders will receive $29.25 per share in cash and the right to receive 0.31584 shares of Yellow stock.

Yellow chairman and CEO Bill Zollars has said combining the companies will strengthen the Overland Park, Kan.-based company's position in the less-than-truckload business, which transports freight from several customers in the same vehicle, as well as give Yellow a presence in the next-day delivery business.

He said he expects Yellow can wring $40 million in savings from USF in the first year and $150 million in the long-term. However, trucking analysts said they remain skeptical that Yellow can achieve those numbers during a period of smaller loads and higher fuel costs.