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SEC Investor - How Much is ExpressJet Really Worth? - The Insider's Guide to SEC Filings


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ExpressJet Holdings Inc. (NYSE: XJT) today announced that it unanimously rejected an all-cash offer by SkyWest Inc. (NASDAQ: SKYW) to acquire the company for $3.50 per share.

ExpressJet said it believes SkyWest's $3.50 per share offer substantially undervalues the company's true value and outlook. "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.

With the difficulty across airline companies reflected in their current trading price - Skywest is trading near its 52 week low and ExpressJet was hovering around its 52 week low prior to this announcement - consolidation has become an attractive option based not only on valuations but long-term survival.

SkyWest's offer represents almost a 70% percent premium over ExpressJet's Thursday closing price of $2.09 per share and values the company at nearly $182 million. SkyWest CEO Jerry C. Atkin said in a letter to ExpressJet that the offer represented a "full and fair price" for the company.

Atkin wrote, "We believe that our proposal would be in the best interests of ExpressJet and its stockholders, particularly given the uncertainty in the airline sector, the high price of oil and, as outlined in your public filings, the risks of your business related to your relationship with Continental."

The risks of ExpressJet's relationship with Continental Airlines (NYSE: CAL) stem from ExpressJet mainly operating regional flights as a contractor for the company rather than having its own routes and name recognition. In other words, the company is largely at Continental's mercy right now.

ExpressJet is going to start a review of its options, but in this climate the reality is SkyWest's offer may be as good as it gets for a small, regional carrier like ExpressJet.

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stephanie

jsbqb11

ok so what does all this talk mean?? we may soon be out of jobs, or what? so can someone fill in the blanks so i fully understand. thanks...

STRCHK

It means Skywest tried to buy us but the offer was rejected. So carry on as normal.

expressfo

ExpressJet is only worth what someone is willing to pay. Wise up.

Stan Marsh

One Million Dollars!!!

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"You mean there's actually people who dedicate their life to sticking their hands up somebody's *ss?"

jsbqb11

so if they or someone would buy us then what would happen to express?? i'm a early '06 hire so what would that mean for people around my senority?? thanks

GasPasser

They tried to buy us for $180 Million. We have $190 million in cash alone, not to mention the paint shop, MX, ground equipment, etc. Our CPA's are worth money too.

Hell...we have enough cash in the back to buy Mesa right now...without a loan.

MJacobsen

Okay, leaving aside all sarcasm and mediocre wit, the straightforward answer to your question is that no one knows anything for certain. By reading Skywest's proposal, you can get a good idea of what they would like to do with XJT (keep us as a separate entity under their holding company), but I suspect that doesn't provide the answer you are looking for, which is what is going to happen to your job.

The truth is that absolutely NO ONE on this message board knows what is going to happen to your job. If I could be so bold as to make a suggestion: don't panic, don't let it keep you up nights. Try to keep yourself informed via OFFICIAL channels (ie, the Company and the Union) as much as you can....the 'pipe is not a good way to keep informed, it's for entertainment purposes only.

Just keep doing your job to the best of your ability and keep a cool head.

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Lex clavatoris designati rescindenda est.

Upay

Couldn't it take months for a buyout even if XJT accepted the first offer? And months more before anything would likely impact any of our jobs, even if it was SKYW's plan to reduce our staffing significantly? So we probably have a while before anyone really knows what's going to happen to any of our individual jobs.

robxjt27

"Atkin wrote, "We believe that our proposal would be in the best interests of ExpressJet and its stockholders, particularly given the uncertainty in the airline sector, the high price of oil and, as outlined in your public filings, the risks of your business related to your relationship with Continental."


Wow, tell us how you really feel. That is a pretty blatant statement, possibly true, but definitely blatant.

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RJF IAH FO