SCS Transportation Inc. based in
, has been getting pressure from a large shareholder group to sell a subsidiary to raise the value of the company’s stock, local media reported.
SCS Transportation has more than 6,200 employees, more than 2,700 tractors and about 8,500 trailers. The company made nearly $645 million in profit in 2004.
The Kansas City Star reported the group, Starboard Value and Opportunity Master Fund Ltd. and its affiliates, have about six percent of SCS shares. Additionally, fund officers want Chairman and CEO Herbert Truckess III to consider selling the firm’s Jevic subsidiary. They say that sale would allow the firm to concentrate on improving the performance of its Saia division.
Starboard also plans to nominate a competing slate of directors for the SCS board at the company’s annual meeting.