ABX shoots down Astar bid

ABX shoots down Astar bid ABX Air said this week it has rejected an offer from Astar Air Cargo to buy the company.
   Miami-based Astar subsequently declined to increase its offer of $7.75 per share and withdrew its interest in ABX Air.
   An ABX statement said its board unanimously voted against the buyout because “it does not represent adequate value for shareholders.”
   The events are a blow to express carrier DHL, which recently acquired nearly half of Astar and uses the two cargo airlines as its primary air transport provider for overnight packages in the United States. A merger would have given DHL more control over what is now a dual network and management team, and increased opportunities to create efficiencies.
   But ABX, based in Wilmington, Ohio, said that while an Astar-ABX link up would have created operational benefits, none of the value from those streamlining efforts would accrue to ABX shareholders.
   ABX determined that it could increase share price more by sticking to its existing business plan, which includes expanding its customer base beyond DHL.