DING DONG The Witch is Dead!

davetheflyer

New Member
Which old witch?

The MESA witch!
(No offense John T.)



For those who havn't heard (and who care), Mesa has officially withdrawn its offer for ACA. It looks extremely likely at this point that we'll be seeing Independence Air A320s at IAD. Woo hoo!


Mesa's Bid for Atlantic Dies

By Eric Gillin
Staff Reporter
12/23/2003 10:46 AM EST
Click here for more stories by Eric Gillin


Mesa Airlines' (MESA:Nasdaq - commentary - research) unsolicited $525 million bid to take over Atlantic Coast Airlines (ACAI:Nasdaq - commentary - research) ended Tuesday.

Mesa's bid to create the world's largest regional carrier failed after mounting antitrust concerns caused United Airlines parent UAL (UALAQ:Nasdaq - commentary - research) to back out of a memorandum of understanding with Mesa.


Late Monday, United said it would be canceling its memorandum of understanding to have a combined Mesa and ACA fly as a regional partner from its Dulles hub in Washington D.C. Under the memorandum, if Mesa were successful in its unsolicited bid for ACA, the company would be paid to fly as a United Express partner. But without this deal to fly for United, Mesa said it would be ending its bid.

"While we continue to believe the combination of Mesa and Atlantic Coast is in the best interests of the shareholders of both companies and we disagree with the court's antitrust conclusions, we understand United's decision and appreciate their need to move forward with plans to maintain service in their Dulles hub without the service of Atlantic Coast Airlines," said Jonathan Ornstein, Mesa's chairman and chief executive.

The beginning of the end of the deal came last week, when a pair of court rulings turned up the legal and political heat.

Late Thursday, U.S. District Court Judge Rosemary Collyer issued a temporary injunction, delaying Mesa's chance to have ACA's shareholders vote to replace ACA's board with members friendlier to the unsolicited offer. This was followed by an announcement from the Department of Justice, which said it had opened an antitrust investigation into Mesa's takeover bid, scrutinizing the relationship between UAL and Mesa to see if the pair colluded to thwart ACA's plan to become a low-cost carrier called Independence Air.

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ready2fly

Well-Known Member
OH Man... WHEW!! For a second there, with you singing show tunes from the Wizard of Oz... I thought you had joined ranks with our other two Dorothy's... Max and gay_pilot.
.

Kidding folks!!



ANYHOOSKIE!!!....
 

aloft

New Member
Maybe a little wishful thinking here. How exactly does the retraction of a NONBINDING MOU amount to the end of Mesa's buyout attempt?
 

MissedApproach

Well-Known Member
I think it's over:
[ QUOTE ]

Reuters
Mesa Terminates Bid for Atlantic Coast
Tuesday December 23, 7:27 am ET


NEW YORK (Reuters) - Mesa Air Group (NasdaqNM:MESA - News) on Tuesday said it will scrap its unsolicited takeover bid for Atlantic Coast Airlines (NasdaqNM:ACAI - News), a day after United Airlines abandoned its regional service agreement tied to the two regional carriers.


On Monday, United's parent UAL Corp. (OTC BB:UALAQ.OB - News) ditched its deal with Mesa to provide service out of Washington Dulles International Airport. Under the deal, Mesa would have taken over certain United Express East Coast routes that are now operated by Atlantic Coast.


Mesa had offered 0.9 of a share of its stock for each Atlantic Coast share. Atlantic has repeatedly rejected Mesa's offer and the deal is now being scrutinized by the U.S. Justice Department and District of Columbia antitrust regulators.

[/ QUOTE ]
Best of luck to ACA.
 

Maximilian_Jenius

Super User
[ QUOTE ]
OH Man... WHEW!! For a second there, with you singing show tunes from the Wizard of Oz... I thought you had joined ranks with our other two Dorothy's... Max and gay_pilot.
.

Kidding folks!!



ANYHOOSKIE!!!....

[/ QUOTE ]


Actually I don't at all care for show tunes the theatre or art exhibits.

But I do love Japanese sports cars with show throw clutches



Matthew

aka Max
 

davetheflyer

New Member
No offense, R2F. We were all somewhat stoked yesterday with the news. Our dispatcher sent us an ACARS while we were enroute to PIT that said "Mesa drops bid."

Of course, now comes the hard part. And if it doesn't work, there will be plenty of people bidding for what is left a la Midway.

And thanks John. Hopefully things will pick up all over.
 
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