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Should Delta Spin Off Comair and ASA?

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Who bought Expressjet? There was an IPO, and with a guaranteed 10 year contract attached to it---some investors may go for it.....Who knows? We got Morgan Stanley to buy $325 million worth of bonds 3 months ago....

Bye Bye--General Lee:rolleyes:
 
General Lee said:
Who bought Expressjet? There was an IPO, and with a guaranteed 10 year contract attached to it---some investors may go for it.....Who knows? We got Morgan Stanley to buy $325 million worth of bonds 3 months ago....

Bye Bye--General Lee:rolleyes:

Apples to Oranges General.

Bond offerings are attractive to investors because there is a guaranteed yield on their investment. Investors know exactly what their return on investment will be, as well as the risk.

With an IPO, it is a totally different ball game, despite the 10 year "cost plus" deals so rampant in today's industry.

At XJT, our IPO provided for 5 years of jet feed hub exclusivity for CAL. Hardly a 10 year deal. Actually, it is a 10 year deal but since the hub exclusivity goes away in 5 years, it is for all practical purposes, a 5 year deal.

The XJT IPO was successful for one party only - CAL Inc. They generated hundreds of millions of dollars in cash for their coffers. Beyond that, the investor got screwed. Our opening price was $16/share. It is now at $12.52. It has only once gone above $16, and that was for a brief period of time. No dividends have been paid out to date.

Sam
 
In a word, yes.

But too late to benefit from it. On paper they are worth much less from the 11th. I think the same at SYX, but as I said, too late now. Much more to lose as a result. It's better for MGMT to have control. That's just the way it is right now.
 

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