Posted this also in the Rumors thread. Interesting times indeed!
ExpressJet rejects takeover offer from SkyWest Reuters
Friday, April 25, 2008; 10:29 AM
NEW YORK (Reuters) -
ExpressJet Holdings Inc (XJT.N) said on Friday it rejected a $181.5 million takeover bid from
SkyWest Inc (SKYW.O) and has begun began a review of strategic alternatives, including talks with SkyWest for a higher price.
SkyWest offered to pay $3.50 a share for ExpressJet, representing a premium of 67.5 percent to ExpressJet's closing price of $2.09 on Thursday.
The value of the deal is based on 51.9 million shares outstanding as of March 10, according to Reuters data.
ExpressJet said it had formed a special committee of independent outside members of its board of directors to evaluate the proposal.
The committee decided the fair value of ExpressJet stock was "substantially higher" than $3.50 and that SkyWest's proposal did not deliver the value of synergies between to the two carriers to its shareholders.
The committee will now conduct a strategic review, which will include talks with SkyWest and other interested parties to evaluate a merger at a higher price, as well as talks with
Continental Airlines Inc (CAL.N) for a new capacity purchase agreement.
ExpressJet began flying under its own brand last year to put a quarter of its fleet to use after former parent Continental canceled a capacity purchase agreement. ExpressJet, which flies regional service for Continental and Delta Air Lines (DAL.N), also started a chartered service.
SkyWest Inc owns SkyWest Airlines and Atlantic Southeast Airlines.
ExpressJet shares were up 84 cents to $2.93 in morning trade on the New York Stock Exchange. SkyWest shares were up 2 cents to $17.18 on the Nasdaq.
(Reporting by Jui Chakravorty; editing by John Wallace)
Skywest makes run at Expressjet 
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