TORONTO, Ont. -- The bidding war for Vitran Corp. is on. Turns out, TransForce wasn’t willing to sit on the sidelines and see Vitran’s Canadian operations be acquired by Manitoulin Transport.
TransForce has offered US$6.50 per share, bettering Manitoulin’s offer of $6 per share made Dec. 9.
Vitran issued a statement this afternoon, confirming it had determined the latest offer to be a “superior proposal” to the one received from Manitoulin.
Manitoulin now has five business days to decide whether to step aside or submit a better offer. If it chooses to walk away, it will receive a $4 million termination fee from TransForce.
“If, within the response period, Manitoulin offers to amend the Manitoulin agreement such that the Board determines that the TransForce offer would cease to be a superior proposal, Vitran will be required to enter into an amendment to the Manitoulin agreement and implement the amended agreement,” Vitran said in a release. “If, within the response period, Manitoulin does not offer to amend the Manitoulin agreement, or if the proposed TransForce offer continues to be a superior proposal following a proposed amendment to the Manitoulin Agreement, Vitran intends to accept the TransForce offer, terminate the Manitoulin agreement and pay to Manitoulin Transport the agreed termination fee of US$4 million, all in accordance with the terms of the Manitoulin Agreement.”