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