difete
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Fuel woes and an ebb in leisure travelers is making ExpressJet reconsider the buyout offer by SkyWest that it once considered too low.
The airline said Tuesday that it is considering all of its strategic options including the bid by SkyWest (nasdaq: SKYW - news - people ). It also announced that it has entered into an agreement with Continental Airlines (nyse: CAL - news - people ) for a new capacity-purchase agreement.
"The ExpressJet (nyse: XJT - news - people ) board and management continue to evaluate all appropriate and necessary actions to enhance value for ExpressJet stockholders in this difficult operating environment," said George R. Bravante Jr., chairman of ExpressJet.
Houston-based ExpressJet rejected a bid earlier in April from SkyWest of $3.50 per share, which was a 67.5% premium over ExpressJet's closing price of $2.09 the day before.
"The initial SkyWest offer is inadequate and represents an opportunistic attempt by SkyWest to acquire the company at a price well below the true value that ExpressJet would bring to a combination," said ExpressJet management in a statement at the time.
The deal values the company at $181.7 million based on the 51.9 million shares outstanding.
ExpressJet said Tuesday it plans to call a special shareholders meeting to potentially issue additional shares, as well as to increase the authorized amount of stock. This is related to the company's efforts to secure new terms of its 4.25% convertible notes due 2023.
The airline mainly operates regional flights under agreements with Continental and Delta Air Lines (nyse: DAL - news - people ).
Shares of ExpressJet were down 2.5%, or 5 cents, to $1.92, in afternoon trading on Tuesday.
Source: Forbes.com
The airline said Tuesday that it is considering all of its strategic options including the bid by SkyWest (nasdaq: SKYW - news - people ). It also announced that it has entered into an agreement with Continental Airlines (nyse: CAL - news - people ) for a new capacity-purchase agreement.
"The ExpressJet (nyse: XJT - news - people ) board and management continue to evaluate all appropriate and necessary actions to enhance value for ExpressJet stockholders in this difficult operating environment," said George R. Bravante Jr., chairman of ExpressJet.
Houston-based ExpressJet rejected a bid earlier in April from SkyWest of $3.50 per share, which was a 67.5% premium over ExpressJet's closing price of $2.09 the day before.
"The initial SkyWest offer is inadequate and represents an opportunistic attempt by SkyWest to acquire the company at a price well below the true value that ExpressJet would bring to a combination," said ExpressJet management in a statement at the time.
The deal values the company at $181.7 million based on the 51.9 million shares outstanding.
ExpressJet said Tuesday it plans to call a special shareholders meeting to potentially issue additional shares, as well as to increase the authorized amount of stock. This is related to the company's efforts to secure new terms of its 4.25% convertible notes due 2023.
The airline mainly operates regional flights under agreements with Continental and Delta Air Lines (nyse: DAL - news - people ).
Shares of ExpressJet were down 2.5%, or 5 cents, to $1.92, in afternoon trading on Tuesday.
Source: Forbes.com
