It takes a bold investor to inject nearly $23 million into a struggling company mired in a labor dispute and on the cusp of bankruptcy.
Despite the mounting challenges faced by less-than-truckload logistics firm Yellow (ticker: YELL), MFN Partners Management, a Boston-based investment firm, has fearlessly become the company's largest shareholder in just under a month.
Beginning on July 10, the same day Yellow received an extension to negotiate with the International Brotherhood of Teamsters and streamline operations, MFN started purchasing Yellow stock. According to forms filed with the Securities and Exchange Commission, MFN has acquired a total of 22 million Yellow shares for $22.5 million, at an average price of $1.02 per share.
With these recent transactions, MFN now owns a commanding 42.5% stake in Yellow, firmly establishing itself as the company's leading shareholder. Interestingly, MFN's filings also reveal that the investment firm holds an 11% stake in Yellow's competitor, XPO (XPO), making them a significant player in the logistics industry.
Yellow's situation continues to be challenging, with operations already suspended. However, despite the bleak outlook, MFN's stock purchases have given the company's shares a boost.
In addition to its investments in Yellow and XPO, MFN has also shown confidence in other companies such as car dealer Lithia Motors (LITH) and PennyMac Financial Services (PFSI), where MFN co-founder Farhad Nanji holds a directorial position.
Inside Scoop is a regular feature that highlights stock transactions made by insiders, including corporate executives, board members, notable shareholders, and politicians. These individuals are required to disclose their stock trades to regulatory bodies like the Securities and Exchange Commission.
