How can Mesa do this?

[azpilot]

In a nutshell they are trying to replace the board at ACA so they can then proceed with a takeover. I have never heard of this tactic before.


UPDATE - Mesa seeking control of Atlantic Coast's board
Tuesday October 14, 9:17 pm ET

(Adds Atlantic Coast's response in paragraphs 5-6)
NEW YORK, Oct 14 (Reuters) - Mesa Air Group Inc.(NasdaqNM:MESA - News) said on Tuesday it would seek to take control of Atlantic Coast Airlines Holdings Inc.'s(NasdaqNM:ACAI - News) board, after the rival airline failed to respond to Mesa's unsolicited $494 million takeover offer.

Mesa, based in Phoenix, said it had filed with the U.S. Securities and Exchange Commission (News - Websites) to nominate seven directors to Atlantic Coast's nine-member board.

Should it win the board control, Mesa said it intends to start an exchange offer for all outstanding shares of Atlantic Coast and to deliver a draft merger agreement to Atlantic's board.

According to Mesa, Atlantic Coast currently has a "poison pill" which effectively prevents it from taking its offer directly to the shareholders of the Dulles, Virginia-based airline. Based on current valuations, Mesa's offer values Atlantic Coast at $10.89 per share in stock.

 

[T-Gates]

JO=Satan

'nuff said

 

[ArcherB]

T Gates,

that avator is hillarious!!

 

[T-Gates]

Even purple dinosaurs gotta get thier groove on too.......

I laugh EVERY time I look at it.....

 

[Mesa Lifer]

Never under-estimate the sh!t that Johnny-O will pull to get what he wants.

And I take offense to a previous quote equating JO to Satan.....totally unacceptable. That makes him look better than he really is....


-ML

T-Gates, where did you get that Dinosaur? Awesome....

 

[Heavy Set]

Wanna bet that UAL is behind a lot of this? UAL says, "Hey JO, if you gain control of obstinate ACA we'll guarantee you a partnership for life..."


Personally, I want to see ACA launch a LCC and grow - who wants to be trapped flying J41s and CRJs for MESA for the rest of their career (that means zero chance for a pay raise - EVER)? GO ACA GO!!!!!!!!!

 

[FatesPawn]

Wanna bet that UAL is behind a lot of this? UAL says, "Hey JO, if you gain control of obstinate ACA we'll guarantee you a partnership for life..."

I TOTALLY agree. UAL has a long history of royally screwing their regional partners - and I can only imagine what they are plotting with regards to a regional-partner-turncoat.

 

[Sandstorm]

Nothing ever good happens as a result of Mesa. It was probably the Mesa curse that caused the cubbies to fall apart in the 8th. it would not surprise me if that now infamous cubs fan was a Mesa pilot in disguise!!

GO CUBBIES!!!!

 

[VFR on Top]

I have never heard of this tactic before.

It's a common hostile takeover tactic, particularly when the target has poison pill provisions in its bylaws.

 

[Erlanger]

More info on what a "poison pill' is!

http://www.nwfusion.com/news/2002/130935_03-18-2002.html