SkyWest Had Made Hostile $3.50/Share Bid For ExpressJet

[F/O]

Why didn't they just offer FIDDY CENT for Mesa stock?? :beer:

 

[USCtrojan]

XJET are good group of folks. I hope they can be under the SkyW INC. umbrella, get some growth and gain security.

Trojan

 

[WalterSobchak]

I've heard of "low balling" the first offer, but their initial offer is a complete joke!

It never hurts to fire off am extremely low offer, especially considering the current state of the industry. Tack on the fact that XJT stock was hovering around $2.15 a share when the offer was made...I think it was worth a shot.

Speaking of XJT stock, just the news of this offer has, as of 1219 Eastern, boosted XJT stock over 40%...to just under $3 a share...

XJET are good group of folks. I hope they can be under the SkyW INC. umbrella, get some growth and gain security.

Trojan

Trojan...I'd like to welcome you to the fold...may I offer you a glass.

All in fun, my friend...

 

[USCtrojan]

It never hurts to fire off am extremely low offer, especially considering the current state of the industry. Tack on the fact that XJT stock was hovering around $2.15 a share when the offer was made...I think it was worth a shot.

Speaking of XJT stock, just the news of this offer has, as of 1219 Eastern, boosted XJT stock over 40%...to just under $3 a share...

Trojan...I'd like to welcome you to the fold...may I offer you a glass.

All in fun, my friend...

LMAO! The dude abides.

Trojan

 

[trip]

Well, they only offered about 180 million this time, XJET has that much in the bank for pete's sake. I've heard of "low balling" the first offer, but their initial offer is a complete joke!

Business 101> if your first offer doesn't embarrass you, you offered to much!

 

[WalterSobchak]

Just read this over on Airliners.net (yes, I know I made a joke about A.net readers yesterday)...I think this is an excellent point.

[FONT=ARIAL, Helvetica, Geneva][FONT=ARIAL,] I don't think it's necessarily about the planes. Methinks it is more about SkyWest getting their ducks in a row in anticipation of a CO/UA merger...[/FONT][/FONT]

[FONT=ARIAL, Helvetica, Geneva][FONT=ARIAL,] I look at this as a sign that CO/UA will be a done deal very soon...[/FONT][/FONT]

____________________________________________
Also....

LMAO! The dude abides.

Trojan

Completely unrelated to the thread...I just noticed that the Kool-Aid Man has kind of the bulge/cameltoe thing going on in that pic. I may never drink Kool-Aid again...

 

[USCtrojan]

Just read this over on Airliners.net (yes, I know I made a joke about A.net readers yesterday)...I think this is an excellent point.




Completely unrelated to the thread...I just noticed that the Kool-Aid Man has kind of the bulge/cameltoe thing going on in that pic. I may never drink Kool-Aid again...

Hijacker! You guys ready to make some room there in St. George for some more dispatchers? Just kidding. Curious. How much of XJET is Unionized? I know the pilots are rep'd by ALPA, what about FA's? Dispatchers?

Trojan

 

[WalterSobchak]

Hijacker! You guys ready to make some room there in St. George for some more dispatchers? Just kidding. Curious. How much of XJET is Unionized? I know the pilots are rep'd by ALPA, what about FA's? Dispatchers?

Trojan

If I remember correctly...and my quickie Google search serves me...
XJT Dispatchers are represented by the TWU and the F/A's are IAM (same as CO F/A's).

 

[joe_pilot]

Very Misleadng Thread Title

http://biz.yahoo.com/prnews/080425/nyf024.html?.v=101

Press ReleaseSource: ExpressJet Holdings, Inc.
ExpressJet Special Committee Rejects SkyWest's Unsolicited Proposal and Commences Review of Strategic and Operational Alternatives
Friday April 25, 9:19 am ET
HOUSTON, April 25 /PRNewswire-FirstCall/ -- ExpressJet Holdings, Inc. (NYSE: XJT - News) today announced that a Special Committee composed of independent outside members of its Board of Directors has unanimously rejected a proposal from SkyWest, Inc. (Nasdaq: SKYW - News) to acquire the Company for $3.50 per share in cash.
The Special Committee, which was formed to evaluate the SkyWest proposal, has commenced a full review of strategic and operational alternatives available to ExpressJet. The strategic review will include, among other options, immediately engaging in discussions with SkyWest and other potentially interested parties to evaluate a merger at a higher price, as well as entering into discussions with Continental Airlines, Inc. regarding a new capacity purchase agreement.
The Special Committee reached the decision to reject the SkyWest proposal after careful consideration, including a thorough review of the proposal with Goldman Sachs & Co., its independent financial advisor, and Abrams & Laster LLP, its independent legal advisor. In making its determination to reject the SkyWest proposal, the Special Committee considered a number of factors, including:
-- The Special Committee believes that the fair value of the Company's stock is substantially higher than the current SkyWest proposal and the $3.50 per share price proposed by SkyWest does not fully and fairly reflect the inherent value of ExpressJet or its prospects, whether as a stand-alone company or part of a larger entity. -- While the Special Committee recognizes that a combination of ExpressJet and SkyWest would likely produce meaningful synergies, SkyWest's current proposal does not deliver the value of these synergies to ExpressJet's stockholders. Therefore, the initial SkyWest offer is inadequate and represents an opportunistic attempt by SkyWest to acquire the Company at a price well below the true value that ExpressJet would bring to a combination.
The Special Committee reaffirmed its confidence in management's ability to successfully execute the Company's current strategic plan. Pat Kelly, Chairman of the Special Committee, noted "The ExpressJet Board and management are committed to taking all appropriate and necessary actions to enhance value for ExpressJet stockholders. As the Special Committee reviews the strategic alternatives available to the Company, we have a solid management team and employees dedicated to providing our customers with exceptional service and conducting business as usual."
In making today's announcement, ExpressJet cautions its stockholders and others considering trading in its securities that there can be no assurance that any definitive offer will be made, any agreement will be executed, or any transaction will be approved or consummated. The Company does not intend to disclose developments relating to this review unless and until the Special Committee and its Board of Directors has approved a specific agreement or transaction.
Going forward, the Special Committee will work together with its financial and legal advisors to evaluate the Company's options and determine the course of action it believes is in the best interests of all ExpressJet stockholders. ExpressJet Background ExpressJet Holdings operates several divisions designed to leverage the management experience, efficiencies and economies of scale present in its subsidiaries, including ExpressJet Airlines, Inc. and ExpressJet Services, LLC. ExpressJet Airlines serves 175 destinations in North America and the Caribbean with approximately 1,500 departures per day. Operations include capacity purchase and pro-rate agreements for mainline carriers; providing clients customized 50-seat charter options; training services through its world-class facility in Houston, Texas; and ExpressJet branded flying, providing non-stop service to markets concentrated in the West, Midwest and Southeast regions of the United States. ExpressJet Services is the North American partner to three major European original equipment manufacturers and provides composite, sheet metal, interior and thrust reverser repairs throughout five facilities in the United States. For more information, visit [URL="http://www.expressjet.com.[/quote"]http://www.expressjet.com.[/URL]

This is in no way, shape or form a hostile takeover attempt...yet. First of all, it sounds like SKYW is talking with the XJT's board, not just buying up outstanding shares. Second, they (XJT’s board) are considering further options/offers:

The Special Committee, which was formed to evaluate the SkyWest proposal, has commenced a full review of strategic and operational alternatives available to ExpressJet. The strategic review will include, among other options, immediately engaging in discussions with SkyWest and other potentially interested parties to evaluate a merger at a higher price, as well as entering into discussions with Continental Airlines, Inc. regarding a new capacity purchase agreement.

Is the offer low? According to the special committee, yes. We'll see what the market says.

As far as this becoming hostile, at this point it would only be considered so if the board breaks off talks with SKYW and they keep trying anyway.

Hey, there was a big jump in XJT stock on this news (currently a 43% increase from the open), so it isn't so bad. At the very least, SKYW's offer has illuminated to the market EXACTLY what XJT's special committee is claiming, that it IS worth far more than it's current market cap. So clearly, just the offer itself is a good thing for XJT shareholders and employees.

As far as how this would effect XJT pilots, I think that even though the branded flying would probably go away pretty quickly (as some of you have already said), there would not be any layoffs. With Freedom on the outs with Delta in a few weeks (allegedly) and the impending MESA bankruptcy and probable continued loss of flying shortly thereafter, I would guess there are actually going to be growth opportunities.

For the record, I wish NO ill will on XJT or any MESA pilots. We all hate MESA corporate, but feel bad for the pilot group. I really wish the best for you guys, but I think the writing is on the wall.

Now, what will the new company be called? SkyWest Express Airlines? SkyJet?

Pay off your debts, save cash and Fly Safe.

-JP

 

[USCtrojan]

there's blood in the water and I'd bet that this deal for sure goes down. I'm gonna say $200-250 mil.

I think SkyW Inc. will be lucky to get it that cheap. Stock is soaring now, as you said, there's blood in the water! We'll see.

Trojan