Deal UncertaintyThe letter of intent is non-binding and requires additional due diligence and approvals, creating meaningful uncertainty about whether the transaction will close.
Governance And Transparency RiskThe proposed structure would grant the private partner control over management and the board while that partner provides limited public financial information, raising governance and execution risks for current shareholders.
Revenue Concentration And Transition RiskLoss of the proactive FedEx business, which represented the majority of the company's third-quarter revenue, creates material revenue uncertainty and pressure during the carrier transition, contributing to analyst downward revisions of valuation.