SkyWest Inc. to purchase RAH

[s.o.sJTB]

Publicly traded company. Always for sale.

Thats not how it works!

First of all it wouldnt be for $103 million, anyone who buys more than 5% of a company stock has to file an SEC form announcing what they are doing. If SkyWest tried to do that what do you think would happen to the share price? When SKYW put in an offer for XJET it was more than 150% of the share price that it was currently trading at and the BOD said no.

 

[BrickTop]

Thats not how it works!

First of all it wouldnt be for $103 million, anyone who buys more than 5% of a company stock has to file an SEC form announcing what they are doing. If SkyWest tried to do that what do you think would happen to the share price? When SKYW put in an offer for XJET it was more than 150% of the share price that it was currently trading at and the BOD said no.

Yes BOD must act in a manner that best serves the shareholders. To OWN a company by measure of stock would require them to purchase all existing stock. But for operational control of a corporation a holder must posses at least 51% of the available stock. FWIU

 

[s.o.sJTB]

Do you really think 51% of the shareholders will sell out for 51% of the current market cap? Hell SkyWest had more cash on hand then its total market cap all together just a couple weeks ago!

When Airtran tried to take over Midwest like your saying SkyWest should do, it drove Midwest shares from the low $4 range to over the $15 TPG ended up paying!

My point is if SkyWest attempted any kind of hostile takeover of RJET it would be very, very expensive...at least a couple of 100% higher then the current share price.

Current share price is not always representative of a companies value.

 

[Andy Neill]

Yes BOD must act in a manner that best serves the shareholders. To OWN a company by measure of stock would require them to purchase all existing stock. But for operational control of a corporation a holder must posses at least 51% of the available stock. FWIU

Yes, but I am sure you understand sos's point that an announced buyout results in a climb of stock price. When SKYW offered to buy XJT, the price of the stock rose 50% to the level of the offer. When the BOD turned down the offer, it went back to where it was before and has since dropped in the year since to less than 5% of the price SKYW was offering. XJT has lost $19.51 per share in the last 18 quarters and 8 of the last quarters have posted losses. Who could argue against the BOD knowing what is best for its shareholders, employees and customers?

 

[StuckInASaab]

Everyone always forgets about the ghost in the shadows when it comes to RAH... Wexford Capital. If SkyWest were to attemt a hostile takeover Wexford has enough capital to leave SkyWest in the dust. These guys own a large percentage in Union Pacific and other very large companies that make SkyWest's $650,000,000 cash on hand look like pocket change.

 

[joe_pilot]

With a market Cap of $206 million dollars, Skywest Inc is positioned to aquire operational control of Republic Holdings by purchasing a mear %51 of common stock valued at($103 million) which equates to 15% of Skywest Inc's avialable unrestriced cash.

The speculation is fine, but you misspelled "mere" both on this thread and on the company forums this morning. Or is that mere coincidence

 

[BrickTop]

The speculation is fine, but you misspelled "mere" both on this thread and on the company forums this morning. Or is that mere coincidence

Yeah I was speculating the spelling..........I was incorrect.

 

[joe_pilot]

No grammur nazi here. It just stood out to me.






Attentshun grammur nazis: Yes, I know how to spell grammer.

 

[Klr2land]

Skywest has no interest in acquiring airlines that have nasty liablities that will go along with the sale. These are not money making operations that have been available recently.

Having discipline with how you spend your money is always the smartest move.

Republic will discover this soon enough.

 

[Deadalus]

With a market Cap of $206 million dollars, Skywest Inc is positioned to aquire operational control of Republic Holdings by purchasing a mear %51 of common stock valued at($103 million) which equates to 15% of Skywest Inc's avialable unrestriced cash.

HAHAHHHAHAHAAHHAHAH! You're way off on your cash numbers. Skywest is in a very dangerous postion because of their ties to United. I have a lot of friends(senior check airmen) that bailed to Southwest and Delta for just that reason.