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Exhibit 99.1
FedEx Announces Preliminary Results of Tender Offer for American Freightways
Shares
MEMPHIS, Tenn.--(BUSINESS WIRE)--Dec. 22, 2000--FedEx Corp. (NYSE:FDX) today
announced the preliminary results of the successful completion of its offer,
made through its wholly owned subsidiary, FDX, Inc., to purchase up to 50.1% of
the outstanding shares of common stock and associated rights of American
Freightways Corporation (Nasdaq:AFWY) at a price of $28.13 per share. The cash
tender offer, which was oversubscribed, expired at 12:00 midnight, New York City
time, on Thursday, December 21, 2000.
FedEx announced, based on a preliminary count, that approximately 16,964,992
shares were properly tendered and not withdrawn, including approximately
4,187,346 shares subject to guarantees of delivery. FedEx will accept the
properly tendered shares on a pro rata basis. The preliminary proration factor
for the tender offer is approximately 96.5 percent.
The determination of the proration factor is subject to final confirmation of
the proper delivery of all shares tendered and not withdrawn, including shares
tendered pursuant to the guaranteed delivery procedure. Payment for shares
accepted for payment, and return of all other shares tendered, will occur
promptly after completion of the final proration computation. Merrill Lynch &
Co. acted as dealer manager for the tender offer.
As previously announced, the tender offer will be followed by the merger of
American Freightways with and into FDX, Inc. As a result of the merger, American
Freightways will become a wholly owned subsidiary of FedEx. In the merger, each
share of American Freightways common stock (other than shares owned by FedEx or
any of its subsidiaries or by American Freightways as treasury stock, all of
which will be canceled, and other than shares that are held by shareholders, if
any, who properly exercise their dissenters' rights under Arkansas law) will be
converted into that number of shares of common stock of FedEx determined by
dividing $28.13 by the average closing price per share of FedEx common stock for
a defined period of trading days prior to the closing of the merger. The merger
is subject to the satisfaction of certain conditions, including the approval of
American Freightways shareholders.
With annual revenues of $19 billion, FedEx is the premier global provider of
transportation, logistics, e-commerce and supply chain management services. The
company offers integrated business solutions through a network of subsidiaries
operating independently, including: FedEx Express, the world's largest express
transportation company; FedEx Ground, North America's second largest provider of
small-package ground delivery service; FedEx Logistics, an integrated logistics,
technology and transportation-solution company; FedEx Custom Critical, the
world's largest provider of expedited time-critical shipments; and FedEx Trade
Networks, a provider of customs brokerage, consulting, information technology
and trade facilitation solutions. More than 2.5 million customers are connected
electronically through the FedEx information network and approximately two-
thirds of its U.S. domestic transactions are now handled online.
_________________
Contact:
FedEx Corporation, Memphis
Media:
Shirlee Clark, 901/818-7463
or
Investor:
Elizabeth Allen, 901/818-7153
Worldwide Web Home Page: www.fedex.com
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