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YRC Worldwide May Request More Time To Enact Reverse Split

Published Wednesday, 25th August 2010 10:21 pm - © 2010 Dow Jones


By Bob Sechler

Of Dow Jones NEWSWIRES

YRC Worldwide Inc. (YRCW) is holding out the possibility that it may seek an extension to an Aug. 30 deadline to enact a reverse stock split and boost its share price above $1 or face Nasdaq delisting.

Executives of the struggling trucking company, which last traded above $1 a share on Jan. 15, said through a spokeswoman Wednesday that they remain intent on avoiding delisting by enacting a reverse split.

But they also said the precise date of the move "will take into account the timing of any appeals," meaning it might not happen by the Monday deadline if YRC seeks an extension.

YRC shares were trading recently around 26 cents. YRC previously has said the planned reverse split will range from 1:25 to 1:5.

The company declined to reveal a reason for what have been repeated delays. Beginning in March, it reiterated several times that it expected to enact the reverse split during the second quarter, but in June it noted that it technically had until Aug. 30 to satisfy the Nasdaq stock market listing requirements.

Chief Financial Officer Sheila Taylor said during the company's second-quarter earnings conference call earlier this month that YRC has "every intention of working with Nasdaq to stay in compliance with listing requirements," although she said the board hadn't finalized the timing of the reverse split.

YRC's spokeswoman said Wednesday the board "will consider what they're going to do in the next couple of weeks," taking into account the possibility of an appeal.

Regardless, Robert W. Baird & Co. analyst Jon Langenfeld said he doesn't consider delisting to be a serious concern for YRC investors. He has an underperform rating on the stock for other reasons.

"My thought is they will not be delisted," Langenfeld said. "If it comes down to them not getting the extension, they would just go ahead and have the reverse split. The board has the authorization [from shareholders] to do that."

-By Bob Sechler, Dow Jones Newswires; 512-258-1690; bob.sechler@dowjones.com

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