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ExpressJet rejects SkyWest's 'opportunistic' offer to acquire the company for $3.50 per share
By Lisa Kerner
Charlotte, N.C., April 25 - ExpressJet Holdings, Inc. said its special committee, composed of independent outside members of its board of directors, unanimously rejected SkyWest, Inc.'s unsolicited proposal to acquire the company for $3.50 per share in cash.
SkyWest's offer does not "fully and fairly" reflect the inherent value of ExpressJet and is an "opportunistic" attempt by SkyWest to acquire ExpressJet, according to an ExpressJet news release.
ExpressJet's special committee also began a review of strategic alternatives that could include immediately engaging in discussions with SkyWest or other interested parties to evaluate a higher-priced merger or discussing a new capacity purchase agreement with Continental Airlines, Inc.
SkyWest said in a statement that it is disappointed that ExpressJet's special committee rejected the proposal. The St. George, Utah-based airline plans to review its alternatives, which could include altering or withdrawing its proposal.
"Based upon the information available to us, and subject to the completion of due diligence which we hope to undertake promptly, we believe a transaction can be structured with ExpressJet which would be accretive to our shareholders," SkyWest executive vice president and chief financial officer Bradford R. Rich said in the statement.
Goldman Sachs & Co. and Abrams & Laster LLP assisted ExpressJet's special committee in its review of SkyWest's offer.
The special committee expressed confidence in management's ability to successfully execute ExpressJet's current strategic plan.
ExpressJet said it does not intend to disclose developments related to the review unless and until a specific agreement or transaction has been approved.
Houston-based ExpressJet operates as a regional airline under the name Continental Express.
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