GXO Logistics slumps on surprise CEO departure, report co spurned acquisition offers

GXO Logistics

04/12/2024 18:33

** GXO Logistics'  GXO.N  shares down 13.4% at $51.12 on Weds
after co announces CEO departure, and on report it rejected
buyout offers
    ** Stock vying for biggest daily pct drop ever. Its largest
decline on record is ~13.4% drop on Mar 7, 2022
** Supply-chain services provider late Tues said Malcolm Wilson
told the board he plans to retire in 2025, and will continue to
lead it during search for his successor
** Meanwhile, GXO plans to remain an independent firm after
exploring sale options recently, Bloomberg News reported late
Tues, citing people familiar with the matter
    ** Wilson has been at the helm since GXO was spun off from
trucking firm XPO  XPO.N  in 2021
** In Oct, Reuters reported GXO was working with a financial
advisor to explore a potential sale after receiving takeover
interest
    ** Barclays reduced its PT by $8 to $52, and Wells Fargo cut
its PT by $5 to $60 after the news
    ** "We expect the combination of an abrupt leadership
change, the end of potential sale prospects and FX headwinds on
2025 earnings should weigh on shares today," Barclays wrote in
note
    ** TD Cowen said it believes Wilson's retirement was a
surprise to those inside and outside the co, "given continuity
was emphasized in recent investor meetings with us"
    ** GXO shares closed at $50.90 on Oct 9, just before the
report of buyout interest
    ** With move on the session, stock down ~16% YTD vs ~1.5%
drop in S&P 400 Transportation index  .SPMDCTRN 

(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper@tr.com 1-646-279-6380))