Yellow defends USF merger deal

OVERLAND PARK, Kan. (AP) -- Transportation company Yellow Roadway continues to face skepticism over its plan to buy USF Corporation next month.<br/><br/>CEO Bill Zollars defended the deal in a conference

Friday, April 22nd 2005, 10:30 am

By: News On 6

OVERLAND PARK, Kan. (AP) -- Transportation company Yellow Roadway continues to face skepticism over its plan to buy USF Corporation next month.

CEO Bill Zollars defended the deal in a conference call with industry analysts Friday.

Zollars says he's confident the merger will strengthen Yellow Roadway and help raise profits through reduced costs.

USF reported disappointing quarterly figures this morning. The Chicago-based company says it lost $5.8million in its first quarter, due mainly to competition and problems in the auto industry.

Just Thursday, Yellow Roadway said its profits doubled in the quarter, to $49.9-million.

The two companies' shareholders are to vote May 23rd on the merger, valued at $1.37-billion.