Steinberg’s Firm May Acquire the Rest of Tiger International
A company headed by takeover artist Saul P. Steinberg is considering buying all the outstanding stock of Tiger International “at a premium over the current market price,” the Los Angeles-based air cargo company said Thursday.
Steinberg’s Reliance Group Holdings has been an investor in Tiger International since 1979 and is now the company’s biggest stockholder with a 16.5% stake in the company. Tiger International’s stock closed Thursday on the New York Stock Exchange at $12.375, down 12.5 cents.
Tiger International said Reliance’s representatives told board members at a meeting Thursday that they do not expect the proposal “to result in any change in Tiger’s ongoing business, marketing strategy and service to its customers.”
A Reliance spokesman declined to say why the company was suddenly interested in buying Tiger International, what kind of price was being considered and when an offer might be made.
Tiger International has formed a committee of independent directors to evaluate any proposal. Reliance has requested that Tiger International pay certain fees and expenses that Reliance will incur related to its offer. Steinberg is a director of Tiger International.
Tiger International is the parent company of Flying Tiger Line, the nation’s leading air freight company, and Warren Transport, a large U.S. hauler of agricultural, construction and heavy industrial equipment.
During Steinberg’s long association with Tiger International, the company went into a prolonged nose dive, and the investment was sometimes cited as one of Steinberg’s less savvy moves. But the company, aided by a pay-cutting agreement with employees, has since returned to profitability.
For the nine months ended Sept. 30, Tiger International reported net income of $56.6 million on revenue of $986.8 million. For the same period last year, the company posted income of $45.2 million on revenue of $878.7 million.