NYC firm takes 3%
stake in USA Truck
ADW Capital Partners has taken 3 percent ownership of USA Truck and is requesting the company review its operational and organizational structure.
In a letter dated Aug. 25, the New York City investment firm asks that the company not "wait until the economy turns or industry dynamics change, their inaction could result in further permanent impairment to shareholder capital." ADW Capital is asking that the company consider spinning off its brokerage division from its truckload business.
USA Truck spurned a $242 million takeover offer by rival Knight Transportation of Phoenix in 2013. Chief Financial Officer Cliff Beckham announced his resignation earlier this month, effective Sept. 30.
An activist shareholder group owning 28 percent of the company was granted two board members of its choosing on the USA Truck board of directors earlier this year.
-- Chris Bahn
Frontier suspends
LR to Denver flights
Frontier Airlines has notified Bill and Hillary Clinton National Airport/Adams Field that it will temporarily suspend service between Little Rock and Denver starting Oct. 26.
Airport spokesman Shane Carter said Frontier told the airport it plans to reinstate service in the second quarter of 2015. United Airlines will continue to operate daily, nonstop flights between Little Rock and Denver.
Frontier's flight to Denver, the only one it offers in Little Rock, was discontinued from July 2008 until November 2011.
Southwest Airlines has released its flight schedule through March 2015, and the airport will experience no additional reductions in service from that airline. Because of the expiration of the Wright Amendment, limiting air traffic from Dallas Love Field, Southwest has been trimming flights around the country and had reduced its number of daily flights from Little Rock to Dallas.
-- Chris Bahn
State index climbs
1.62, ends at 355.01
The Arkansas Index, a price-weighted index that tracks the largest public companies based in the state, gained 1.62 to 355.01 Monday.
"The major averages moved higher Monday extending the stock market's run as investors reacted to the latest round of mergers and acquisitions announcements," said Bob Williams, senior vice president and managing director of Delta Trust Investments Inc. in Little Rock.
USA Truck rose almost 3.5 percent.
Bear State Financial fell just over 4 percent in light volume, Williams said.
Total volume of the index was 11.4 million shares.
The index was developed by Bloomberg News and the Arkansas Democrat-Gazette with a base value of 100 as of Dec. 30, 1997.
Business on 08/26/2014