C.H. Robinson to buy RXO for $5.8 bln

* Freight forwarding firm C.H. Robinson Worldwide said on Monday it would acquire smaller rival transportation broker RXO for $5.8 billion, its biggest deal yet, to expand its North American truck-brokerage footprint and strengthen last-mile delivery * RXO down nearly 2.5% premarket; C.H. Robinson flat on light volume * 18 analysts rate RXO "hold" and 24 analysts rate CHRW "buy" on average No Guts, No Freight * J.P.Morgan sees the deal-related decline as an opportunity for investors who can be patient and navigate the claim and execution uncertainty ahead * TD Cowen says it was surprised by the deal, citing legal liability concerns, RXO's debt levels, customer overlap, and the timing of the deal amid ongoing legal challenges in the brokerage industry * Benchmark says while the deal increases Robinson's exposure to freight brokerage, legal liability risks and debt, and could dilute shareholders, the market is overlooking the significant earnings and cost-saving opportunities it creates * Baird says the deal creates value through cost synergies, broadens customer and carrier exposure, reduces the impact of individual legal claims, and strengthens Robinson's position with large shippers shifting freight from smaller brokers (Reporting by Akriti Shah in Bengaluru) ((akriti.shah@thomsonreuters.com; X, formerly Twitter: @AkritiShahh)