More details on Elliott and XPO XPO Logistics Wins Round in Paris Court Over Norbert Dentressangle Shares
A court granted the logistics company temporary injunction in its battle with hedge fund Elliott Capital Advisors
A New York hedge fund can’t stop XPO Logistics from exerting its control of Nobert Dentressangle but can complicate its ownership, according to analysts, if it does not sell its shares to Connecticut-based XPO.
By BRIAN BASKIN
July 8, 2015 6:49 p.m. ET
XPO Logistics Inc. escalated its fight with a New York hedge fund that is preventing the company from completing its acquisition of a French logistics firm.
The Paris Commercial Court granted a temporary injunction barring Elliott Capital Advisors LP from selling its stake in Norbert Dentressangle SA to any party other than XPO Logistics. The injunction, requested by XPO, came after Elliott, a unit of Paul Singer’s Elliott Management Corp., accumulated a roughly 7.5% stake in the company, a person familiar with the matter said. Greenwich, Conn.-based XPO announced in June that it had acquired two-thirds of Norbert shares, part of an estimated $3.53 billion acquisition.
Elliott can’t stop XPO from taking control of Norbert, but it can complicate its ownership, analysts say. For example, XPO needs to control 95% of Norbert’s shares to delist the company on the Euronext Paris exchange, said Casey Deak, an analyst with Wells Fargo.
“They just don’t want any loose ends or shares left on the table,” Mr. Deak said.
The injunction is in place until the parties meet for a hearing on July 23, when the court can either extend the injunction or order a full trial, the person familiar with the situation said.
Acquiring Norbert Dentressangle vaults XPO into the top ranks of global freight brokerages, which help companies ship goods by booking transportation and gaining faster routes and cheaper transport rates. The combined company would have about $8.5 billion in annual revenue, up from $2.46 billion last year and just $158 million in 2010, when XPO embarked on a series of acquisitions.
The Paris Commercial Court granted a temporary injunction barring Elliott Capital Advisors LP from selling its stake in Norbert Dentressangle SA to any party other than XPO Logistics. The injunction, requested by XPO, came after Elliott, a unit of Paul Singer’s Elliott Management Corp., accumulated a roughly 7.5% stake in the company, a person familiar with the matter said. XPO announced in June that it had acquired two-thirds of Norbert shares, part of an estimated $3.53 billion acquisition and Elliott built up its share holdings after that.
Elliott can’t stop XPO from taking control of Norbert, but it can complicate the deal, analysts say. For example, XPO needs to control 95% of Norbert’s shares to delist the company on the Euronext Paris exchange, said Casey Deak, an analyst with Wells Fargo.
“They just don’t want any loose ends or shares left on the table,” Mr. Deak said.
The injunction is in place until the parties meet for a hearing on July 23, when the court can either extend the injunction or order a full trial, the person familiar with the situation said.
Acquiring Norbert Dentressangle vaults XPO into the top ranks of global freight brokerages, which help companies ship goods by booking transportation and gaining faster routes and cheaper transport rates. The combined company would have about $8.5 billion in annual revenue, up from $2.46 billion last year and just $158 million in 2010, when XPO embarked on a series of acquisitions.
Write to Brian Baskin at brian.baskin@wsj.com
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