MESA and ACA may merge!

[khsgt]

And The Plot Thickens....

Any speculation as to what this might do for interviewies or poolies for Mesa and to the near term hiring prospects for Mesa/ACA?

Note - This isn't flame bait, honest question.

Thanks everybody

 

[Splert]

Reuters
UPDATE
Monday October 6, 1:30 pm ET

Atlantic is yet to respond to the approach. But people familiar with situation said that both chief executives are known to each and it was expected that Atlantic's boss Skeen would turn the initial offer down, hence Mesa went public with the bid in a typical "bear hug" fashion.

Some bidding companies launch a takeover process this way to put the target company in the spotlight so that it does not stall pondering the offer and has to respond soon.

Atlantic had yet to respond to calls put in by Reuters.

 

[Z_Pilot]

Atlantic Coast Airlines Response to Unsolicited Offer by Mesa Air Group



Monday October 6, 1:28 PM EDT

DULLES, Va., Oct 6, 2003 /PRNewswire-FirstCall via COMTEX/ -- Atlantic Coast Airlines Holdings, Inc. ("ACA" or the "Company") (ACAI) confirms that its Chairman and Chief Executive Officer today received an unsolicited letter from Mesa Air Group, Inc. ("Mesa") proposing that Mesa acquire ACA in an all-stock transaction at the rate of 0.9 of a share of Mesa's common stock for each share of ACA's common stock. ACA's Board of Directors was copied on this letter and is now considering the offer. While it undertakes this review ACA will continue with its current operations and with the implementation of its plans to operate as an independent airline.

 

[Heavy Set]

I personally hope that ACA balks at this offer and creates the next AirTran... That would be better for all pilots - who needs a larger MESA with $hit contracts.... JO is an empire builder with no regard for individual pilots - just look at Freedumb...

 

[I.P. Freley]

A friend suggested a possible scenario underway here.

To hear HIM tell it, JO once bought up a bunch of stock in another company (Pinnacle or its' predecessor? I've already forgotten), announced plans for a buyout, watched the stock rise in price, and sold off his stock... Netting a whole shipload of $$$ in the process... Never having planned to do anything at all with said company.

Thoughts?

 

[OldManPilot]

That would be insider trading and the SEC would have had JO up on security charges if that were true

 

[BeechScrub]

JO dumped a ton of Mesa stock last week ahead of this announcement, and today it's off by $1.00+. Any bets on how soon he buys his stock back?

 

[stillaboo]

That would be insider trading and the SEC would have had JO up on security charges if that were true

Jo was a stockbroker before he was fired for unauthorized trading.

No, I'm not kidding.

 

[Heavy Set]

Oldmanpilot,

That is wrong. Donald Trump did the same thing in the 80s when he tried to acquire American Airlines - he bid on it, watched the stock soar, and then dumped his stock for cash. It happens all the time...

If MESA buys ACA, the ACA guys should not expect any raises for a long, long, long time.... I wonder how much UAL is behind this move? Perhaps UAL is using Orenstein as a puppet to ensure that its feed remains at Dulles... Anyone considered that?

 

[wscrj]

Some new info...

Just to update regarding Freedom -v- Mesa. As of this bid, there are 3 lines on -900 flying on the MESA certificate and several lines of -700 flying with UAL. The differences training on the 700/900 is in full swing for MESA pilots, and several airframes have been moved over onto the MESA certificate. I have heard NO definitive answer as the the future of the Freedom certificate.

As for the stock prices today, it is quite expected for ACAI stock to rise on a purchase announcement, and MESA to drop...fairly basic economics in play there.

CCAir was shut down, the pilots that were there are now flying in the MESA AIR GROUP system somewhere, with seniority worked out from a list merger shortly after they were purchased.

As a MESA guy out on FMLA (New baby!) this is a surprise to me...but then JO typically doesn't consult with me.