Possible ExpressJet buyout?

[Erlanger]

There's that Hayman Advisors at it again. Interesting last sentence. What does "synergies" mean anyway?


ExpressJet Holder Calls For Changes In Business Strategy
Tuesday 01/22/2008 4:54 PM ET - Dow Jones News
DOW JONES NEWSWIRES

Hayman Advisors LP, a 6.25% shareholder of ExpressJet Holdings Inc. (XJT), on Tuesday sent a letter to Chief Executive James B. Ream, requesting certain changes to the Houston regional airline's business practices and strategy.
The stockholder said it believes that the company's stock price decline is largely a result of management's decision to launch the "Branded Flying" strategy in the face of an economic recession.
ExpressJet, which provides connecting flights for Continental Airlines Inc. (CAL) to smaller cities, in May announced an ambitious plan to take its own brand to 24 cities while it continues to fly for other airlines.
Hayman said in the letter that "it is absolutely the wrong time for the company to continue ramping up the Branded Flying strategy", and the company should immediately abandon this strategy and return to its flying agreements with other airlines.
The stockholder also urged ExpressJet to engage an investment bank to look for a buyer for the company.
In October, ExpressJet said it has considered taking itself private.
In the letter, which was disclosed in a filing with the Securities and Exchange Commission, Hayman suggested that the company must look past private equity players and Continental. It said it sees "tremendous synergies" with Republic Airways Holdings Inc. (RJET) and Skywest Inc. (SKYW) and would urge the company to explore these possibilities.

 

[Whiskerbizkit]

synergies.

Means they would do better if they merged with one of those two.

 

[Superpilot92]

I could see a Mesa buyout by xjt. Instandly lock in multiple codeshares and bigger aircraft. Stock price is low enough.

 

[Habib]

What about CAL buying them back?

 

[dal757]

xjt buying Mesa?

what about xjt buying Mesa?

 

[Brasilia Flyer]

Or could it be SkyWest buying XJet?

http://www.deseretnews.com/article/1,5143,695246656,00.html

 

[flyboy06]

Or could it be SkyWest buying XJet?

http://www.deseretnews.com/article/1,5143,695246656,00.html

had to give it its own thread

 

[ratherbeflyen]

Or could it be SkyWest buying XJet?

Xjet can NOT be bought w/o CAL's appoval.

 

[Superpilot92]

Xjet can NOT be bought w/o CAL's appoval.

Thats true, but all skywest has to do is tell CAL they will lower the rate xjt charges immediately following the buyout.

 

[hagen]

Xjet can NOT be bought w/o CAL's appoval.

Yeah but for the right price CAL will get rid of it faster than a stripper with a cold sore.

 

[Jmoney]

Not Exactly....

synergies.

Means they would do better if they merged with one of those two.

"Synergy" is a term which means "the efforts of two entities would result in an effect that would exceed the sum of said efforts."

In other words-this is complete BS! The term is now used derisively by many to poke fun at anyone who would dare use it in a serious manner. It is complete "management weekend course" babble that has no useful application in the real world.

Think about it-two entities that give you more than the sum total of what they give you? The very definition implies that the term is BS. In truth, successful business people do use this term as a bit of a joke-and they never put faith in anyone who would use it in a serious manner.

 

[XJohXJ]

What does "synergies" mean anyway?

"Synergies" means "layoffs".

When corporate types talk about taken advantage of "synergies", what they are really saying is: "Let's fire some good responsible employees so we can fatten up our bonus checks!"

 

[BigHangar]

Everyone keeps using the term 'buyout', but the article only refers to 'merger'. SkyWest and XJT are both in a fairly good cash position, but XJT's undervalued stock is what makes it attractive to some as an acquisition. I didn't however, read that in the article.

 

[DrewBlows]

Hayman Advisors can put their money where their mouth is as far as I'm concerned. If they want to make decisions on the future of Xjet, they can turn their 6.25% into 50%+1. How the hell is it legal for a shareholder to float ideas that will affect stock price in a press release? They have no interest in the company other than to boost stock price. The term "pump and dump" comes to mind. They haven't sold shares yet (and likely won't any time soon), but there is a time and place to influence company strategy. Hayman has a vote for every share of Xjet stock just like every other share holder.

 

[PBRstreetgang]

I hope it happens and the XJT guys get DOH, that will fix the majority of the 65%ers.
PBR

 

[Bako Cap]

I think relative seniority with good fences for any merger could be worked out. I'm still waiting for a merger with ASA, but I think that it would not help BH in his quest for bidding against his old airline (gotta keep INCs cost low, ya know). A good merger stops the whipsaw.

 

[erj-145mech]

What about CAL buying them back?

Because if CO bought them, then they'd have to pay them real wages!

 

[PBRstreetgang]

I think relative seniority with good fences for any merger could be worked out. I'm still waiting for a merger with ASA, but I think that it would not help BH in his quest for bidding against his old airline (gotta keep INCs cost low, ya know). A good merger stops the whipsaw.

A noble thought, but quite useless. If SKYW buys XJT, I would bet Skid-, and a months worth of F5 keystrokes that ALPA would push for the one carrier list, that would most likely bring enough votes to bring ALPA on property. I would also bet that the Federal Judge would implement a seniority scheme that would leave SKYW pilots desiring something else. SKYW cannot buy the entire regional sector of the industry and remain cloaked by the shadows. Without a contract we do not even have a seat at the table.
PBR

 

[CitationUltra]

"Synergy" is a term which means "the efforts of two entities would result in an effect that would exceed the sum of said efforts."

In other words-this is complete BS! The term is now used derisively by many to poke fun at anyone who would dare use it in a serious manner. It is complete "management weekend course" babble that has no useful application in the real world.

Think about it-two entities that give you more than the sum total of what they give you? The very definition implies that the term is BS. In truth, successful business people do use this term as a bit of a joke-and they never put faith in anyone who would use it in a serious manner.

You mean the sum of the effort would exceed the sum total of what they give you? OR would the total sum of the parts of what they give you, exceed the total of the parts of what they individually have?