A New York hedge fund that owns 7.5 percent of shares in Norbert Dentressangle is making it difficult for XPO Logistics’ otherwise seamless acquisition of the French forwarding and logistics firm. Elliott Capital Advisors LP is attempting to force XPO to pay more per share for its small percentage of ownership, according to the Wall Street Journal.
However, on July 7 the Paris Commercial Court granted a temporary injunction, which will prevent Elliott Capital Advisors LP from selling its shares in Norbert Dentressangle to anyone other than XPO. The injunction, requested by XPO, is valid until July 23, when representatives for both parties meet for a hearing.
The hedge fund principals can’t stop the acquisition, but in order for XPO, a U.S. transporter, to delist Norbert Dentressangle from the Euronext Paris exchange, it must have control of 95 percent of Norbert’s shares.
The acquisition, announced in April, is valued at US$3.56 billion. Once the purchase is finalized, XPO is poised to become a top-ten worldwide logistics company, boosting revenues to around $8.5 billion. Norbert Dentressangle, based in Lyon, France, has considerable assets, including a fleet of 7,700 bright- red owned trucks, 3,200 trucks contracted through owner-operators and access to an additional 12,000 independent carriers. Once combined, XPO expects to have 52,350 employees at 863 locations in 27 countries.