MESA and ACA may merge!

[Carl_Everett]

If you've been watching the markets lately no one is "long-term" anymore... It is all about short term gains and moving on. a 25%+ return (35% on average since July) from losses is very attractive to shareholders no matter who they are. Unfortunately shareholders don't care about the employee groups, they only care about their return on investment.

Disclaimer: I don't own any ACA or Mesa stock, nor do I necessarily agree with this merger, just merely making an observation.

But a large majority of ACAI stock is held by investment houses. I think it is somewhere like 87%. Large investment houses are in it for long term gains. Now the question becomes: Does the investment world like LCC's or code-shares?

 

[Splert]

No... I haven't been watching the markets lately. I did not realize that all investors in this universe were anti long-term. Shoot, I missed the memo.

I am thinking most BODs are long-term.

Whatever...

This unsolicited offer is a gut check for ACA's BODs.

Splert

 

[surplus1]

The investment world likes money, and that includes the "institutions". If they can improve the value of their holdings by 25 - 35%, what do you think they will do? Falcon isn't off base. This isn't about "running an airline", it's about making a dollar.

Given the public nature of the announcement with no word from ACA, it looks like this is intended to be an unfriendly tender. I can't believe they haven't "discussed it" behind the scenes before JO went public.

The LCC is a nice idea but it is not a sure winner and there is high risk. The investors may well look at this as a means to cover their a$$es. What happens to employees has never been a concern of the bean counters and it isn't now. That's sad, but it's also true.

If the ACA Board doesn't want this, I hope they have a darn good poison pill hiding somewhere.

 

[Carl_Everett]

The investment world likes money, and that includes the "institutions". If they can imporve the value of their holdings by 25 - 34%, what do you think they will do? Falcon isn't off base. This isn't about "running an airline", it's about making a dollar.

Agreed, but they will look at MESA's stock value. If I understand this correctly, the deal is stock only. No cash involved means the deal will be based on pure speculation of the true value of MESA shares. So what does Wall Street think of MESA long term? Do they think MESA is overvalued? If they do, then it would be a bad deal. What do they think of ACA long term? Will the LCC put ACA stock higher than the percieved value of MESA? Someone posted this will be a gut check for the ACA BOD, that is an understatement.

 

[FL000]

--Blue Horseshoe Loves ACA Holdings.

--Why do you need to wreck this company?
--Because it's wreckable, all right?

--The point is, ladies and gentlemen, that greed, for lack of a better word, is good. Greed is right. Greed works.

--When I get a hold of the son of a b!tch who leaked this, I'm gonna tear his eyeballs out and I'm gonna suck his f'ing skull!

 

[captjim]

Surplus1, I was thinking just what you are thinking. This is indeed an attempt of a hostle takeover. This anouncment will get all of the ACA investers whipped into a frenzy. This gives them a way out at a profit or at the very least close to break even.

JO is a smart guy, a not so nice guy, but cunning.

 

[Splert]

Agreed, but they will look at MESA's stock value. If I understand this correctly, the deal is stock only. No cash involved means the deal will be based on pure speculation of the true value of MESA shares. So what does Wall Street think of MESA long term? Do they think MESA is overvalued? If they do, then it would be a bad deal. What do they think of ACA long term? Will the LCC put ACA stock higher than the percieved value of MESA? Someone posted this will be a gut check for the ACA BOD, that is an understatement.

Excatly...

Splert

 

[crashpad]

Mesa is the only airline stock going down today and ACA soared over $2.00!

We'll all know soon enough what will happen. Mesa struck hard and fast with CC Air, West Air and Air Midwest. Air Midwest was the only one to assimulate quietly.

On the plus side, there'll be more pilot bases and flights to non-rev on. And thinking long-term, you'd be looking at the largest regional pilot group in the world. That's seems like a lot of leverage if everyone could learn to get along.

 

[Noam]

This is nothing more than union busting at its finest.

Mesa pilots take it up the butt, ACA can no longer compete for UAL routes, Mesa buys ACA.

Glad I left ACA when I did.

Godspeed ACA...and Mesa, go to heck!

 

[FMR_RGNL_PLT]

Admittedly, I know little about the financial implications of all of this to investors, but for the pilots of ACA it must be pretty scary.

Historically, when a "merger" has taken place the employees at the smaller company, ie. ACA in this case have not benefitted. Look at what the TWA guys are still suffering through with American.

In the automobile industry I know that many people at Chrysler flew the coop after being bought out be Daimler-Benz.

Good luck to the bluestreakers.............