UTU Bus News Digest - December, 1998

UTU Bus Department News Digest
Information of interest to transportation employees December, 1998

Greyhound holders hope to end Laidlaw deal

NEW YORK -- A group of Greyhound Lines Inc. investors said it would vote against Canadian transportation group Laidlaw Inc.'s $6.50 a share takeover offer for Greyhound, as Laidlaw shares lost about 5 percent of their trading value on Wednesday.

The group, which holds about 4.36 million shares for a 7.3 percent stake in Greyhound, described the bid as "inadequate'' and said it would urge other shareholders to oppose it. New York investment firm Greenway Partners LP leads the group.

Laidlaw shares fell to C$15.20, down C$0.70, in Toronto Stock Exchange trade. Shares of Greyhound closed unchanged at $5.94 in Friday's holiday-shortened session on the American Stock Exchange.

The combination of Laidlaw, which already owns Greyhound Lines of Canada, and Greyhound Lines would create a bus company with routes stretching through the United States, Canada and Mexico.

Laidlaw, headquartered in Burlington, Ontario, is the largest healthcare transportation, school bus and municipal transit service in North America. Dallas-based Greyhound is the only nationwide provider of inter-city bus transportation in the United States.

In October, Laidlaw offered $470 million in cash-and-stock to acquire 60 million Greyhound common shares and 2.4 million convertible preferred shares. In addition, Laidlaw will assume $180 million in Greyhound debt bringing the deal's total value up to about $650 million.

The stock-and-cash portion of the offer represents an 8.6 percent premium over Dallas-based Greyhound's closing price on Friday.

The deal is a positive for Laidlaw because passenger service operations provide a stable cash flow, said analysts after the deal was announced. The company, however, still remains exposed to the healthcare industry, which faces payment pressures as the focus on cost reduction continues.

Laidlaw's revenue and earnings base, now equally divided between passenger transportation and healthcare-related operations, will shift to 60 percent passenger services after the merger.

Officials at Greyhound, Laidlaw and Greenway Partners were not immediately available for comment.

In mid-October Greyhound's board recommended that shareholders approve the Laidlaw deal at a special meeting scheduled for January. Following the merger, Greyhound said its headquarters will remain in Dallas and no operational or personnel changes are expected in the near term. It employs 12,500 people, including 1,825 in Dallas.

The companies expect to eliminate duplication in purchasing equipment, financing, head office and other costs.

Laidlaw would receive a $20 million break-up fee if Greyhound holders tender to a higher offer.

Attack highlights TNM&O drivers’ security concerns

The issue of security raised by United Transportation Union (UTU) bus drivers working for Texas, New Mexico & Oklahoma Coaches, Inc., has taken on new urgency in the wake of a recent attack on driver Isaac W. "Bill" Foshee.

A member of UTU Local 1697 in Lubbock, Tex., Foshee said the man who attacked him with a pair of scissors makes a good case for the new security measures drivers are seeking in their next contract.

Just after 8 p.m. on December 1, shortly after Foshee had taken over as driver of a bus headed from Dallas to Amarillo, Tex., a man approached him from behind and "just started stabbing," Foshee said.

"I never knew it was coming ’til he hit me," Foshee said.

As the vehicle rolled along at 60 mph on Texas Highway 287, two of the 38 passengers came to Foshee’s aid, helping him knock the assailant into the well near the front door of the bus. Foshee brought the bus to an emergency stop, popped open the door, and the assailant fled, running about a half mile before being collared by the law.

Foshee suffered puncture wounds on the right side of his neck and his left elbow. His assailant was charged with aggravated assault, with bond set at $30,000.

Because TNM&O buses carry no communications equipment, Foshee had to use his own cellular phone to call for emergency first aid.

Foshee noted that company-owned phones or two-way radios and a plastic panel behind the driver’s seat would be helpful to drivers facing similar incidents.

Members of Local 1697 have asked for such communications equipment and protective panels as part of the new contract they are negotiating with TNM&O. Though some of the buses are equipment with protective panels, none have communications equipment.