The heads of Cowan Enterprises Inc. and Port East Transfer Inc. said yesterday they have ended merger talks aimed at creating a big, publicly owned, Baltimore-based transportation company.
Edwin F. Hale, owner of Port East Transfer, said the deal collapsed when the two sides could not resolve tax liabilities that would have resulted from spinning off one of Cowan's operations.
"It was a very complex deal," said Mr. Hale, who categorized the negotiations as amicable.
The merger would have created a trucking, barging and warehousing operation generating annual revenues of about $100 million.
Mr. Hale brought to the table Port East Transfer, a trucking company,and Hale Container Line, a barge company. Cowan Enterprises includes two trucking operations, Ty Pruitt Trucking and Cowan Transportation Inc., as well as Key Warehouse Services Inc., which has two warehouses in the Baltimore area.