Well the shakeup is starting for the regionals - Mesa's "Freedom Air" contract with Delta was cancelled. Frontier just cancelled Republic's E170 contract and this morning we find out that skywest is trying to buy expressjet. If they are successful Skywest will be the biggest airline in the world with 710 aircraft (lots of assumptions in this statement).
http://www.sec.gov/Archives/edgar/da...042408e992.htm
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