SkyWest Had Made Hostile $3.50/Share Bid For ExpressJet

[TEXAN AVIATOR]

Francis, you need to relax. The ASA pilots thought the same thing. Ain't going to happen. XJT will be run separately like ASA is. Read the posts by USCtrojan and Speedtape. It'll all be fine.

Remind me again how the contract negotiations have gone for ASA.....

Our pilots still want to improve on our contract when the extension expires.

 

[10nCLR]

so now ASA and XJT are Skywest's bitches?

and we can all drink from the same pitcher.
Oh, YEAAAH!

 

[amcnd]

What does SkyWest not like about pages 223 thru 226?

Good Question??? Anyone??

 

[Goose Egg]

It looks like WN missed the boat.

-Goose

 

[BoilerUP]

Good Question??? Anyone??

My guess is it has something to do with their scope clause and how it is bound to the holding company...

 

[n7715x]

From reading all the letters on the SEC website, I conclude that basically CAL intends to pull 51 a/c from XJT's flying in June. Then, they intend to not renew their contract by December, which will lead to the flying progressively going away by the end of 2012.

I thought for a second that maybe the Rev. Brian Bedford of RAH may want to stick his hand in this somehow, maybe make a higher offer for XJT, then try to make a lower offer to CAL for future flying than SKYW has...but then if you read the letter from SKYW, it says that CAL has informed them that they are not in talks with any other carrier for increased capacity. Also, Bedford has said multiple times that he is interested in expansion with 70+ seat a/c only.

It does indeed seem like CAL very much wants this deal to happen, it is probably just a matter of price now.

 

[USCtrojan]

Latest and the greatest off the wire:



ExpressJet shares soar by nearly half following SkyWest bid

April 25, 2008
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All Associated Press news
NEW YORK (AP) - ExpressJet Holdings Inc. shares jumped by more than half Friday after the regional carrier rejected a rival's takeover bid as too cheap, but signaled it might be willing to sell for the right price.
The Houston airline said SkyWest Inc.'s offer of $3.50 per share undervalues the company, which mainly operates connecting flights under contract to Continental Airlines Inc. and Delta Air Lines Inc. It also said it was establishing a committee to review "strategic and operational alternatives" to the bid.
"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," ExpressJet said in a statement.
ExpressJet shares have been hammered along with other airline stocks in recent months as the economy soured and fuel prices soared. The stock was trading above $6 per share as recently as July, although it has not broken above the proposed purchase price since mid-February.
While the company said SkyWest's existing offer does not fairly reflect ExpressJet's value, it did acknowledge that the combined company "would likely produce meaningful synergies." That suggests ExpressJet might be willing to consider a higher offer.
"We believe that ExpressJet management would be open to a higher offer, which SkyWest may be willing to make," Calyon Securities analyst Ray Neidl said in a note to investors. He added that "we have doubts about ExpressJet's ability to survive in the long run and think that ExpressJet would be wise to consider the current offer."
SkyWest Vice President of Finance and Treasurer Mike Kraupp declined to comment when asked whether SkyWest might consider raising its bid. The company said in a statement it was disappointed by the rejection and planned to review its options, which could include altering or withdrawing its offer.
"The ball is back in our court," Kraupp said.
A representative for ExpressJet could not immediately be reached for comment.
Airlines of all sizes have come under increasing pressure to cut costs and boost revenue in the face of rapidly rising fuel prices, and a number of smaller carriers have gone out of business or turned to bankruptcy protection in recent weeks. Many industry observers argue that more consolidation is needed for the industry to remain viable.
Earlier this month, Delta and Northwest Airlines Corp. agreed to combine to create what would be the world's biggest airline. Other large carriers have reportedly been in talks about tie-ups of their own.
Neidl said trading in ExpressJet shares suggests the market believes there is a 50/50 chance the deal could go through, although he believes the odds are better because shareholders will likely pressure ExpressJet to sell. He rates the stock "Neutral."
"If a deal is not consummated, we believe the stock would revert to its pre-offer level around $2 per share," Neidl added.
ExpressJet shares surged $1.16, or 55.5 percent, to close at $3.25.

 

[WalterSobchak]

"would likely produce meaningful synergies."

I'm so sick and frickin' tired of that phrase.

 

[joe_pilot]

Ok, here's my guess. It happens for $4.75 per share. Takers?

 

[suupah]

and we can all drink from the same pitcher.
Oh, YEAAAH!

avatar of the year!!!!