TigerFlyer
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PHOENIX--(BUSINESS WIRE)--Oct. 6, 2003--
Mesa Air Group, Inc. (Nasdaq: MESA) today announced
that it has made a proposal to the board of directors of Atlantic
Coast Airlines Holdings, Inc. (Nasdaq: ACAI) to combine the two
companies. The combination would create the leading operator in the
regional airline industry, with nearly 300 aircraft and broad reach
across major US markets.
The attached letter, expressing interest in a combination of the
companies, has been sent from Mesa Chairman and Chief Executive
Officer Jonathan Ornstein, to ACA's Chairman and Chief Executive,
Kerry Skeen.
Under the terms of the all-stock offer, Mesa has offered 0.9 of a
Mesa share for each share of ACA. Based on Mesa's stock price on
October 3, 2003, the offer is valued at $11.30 per ACA share. That
represents a 25% premium over its closing stock price Friday and a 35%
premium over ACA's average trading price since July 28, 2003.
Mr. Ornstein commented: "ACA is a great company with an excellent
operational track record, committed hard working employees and a
proven history of financially successful code share partnerships.
While the company has indicated that it intends to end its
relationship with United Airlines and shift strategy, we continue to
believe that a business model based on revenue guarantee code share
relationships with major airlines serving hub networks offers the
greatest long-term prospects for shareholders, customers and
employees. By bringing these two companies together, and maintaining
the successful revenue guarantee code share business model, we have
the opportunity to create the leading regional airline in the United
States."
Mesa Air Group, Inc. (Nasdaq: MESA) today announced
that it has made a proposal to the board of directors of Atlantic
Coast Airlines Holdings, Inc. (Nasdaq: ACAI) to combine the two
companies. The combination would create the leading operator in the
regional airline industry, with nearly 300 aircraft and broad reach
across major US markets.
The attached letter, expressing interest in a combination of the
companies, has been sent from Mesa Chairman and Chief Executive
Officer Jonathan Ornstein, to ACA's Chairman and Chief Executive,
Kerry Skeen.
Under the terms of the all-stock offer, Mesa has offered 0.9 of a
Mesa share for each share of ACA. Based on Mesa's stock price on
October 3, 2003, the offer is valued at $11.30 per ACA share. That
represents a 25% premium over its closing stock price Friday and a 35%
premium over ACA's average trading price since July 28, 2003.
Mr. Ornstein commented: "ACA is a great company with an excellent
operational track record, committed hard working employees and a
proven history of financially successful code share partnerships.
While the company has indicated that it intends to end its
relationship with United Airlines and shift strategy, we continue to
believe that a business model based on revenue guarantee code share
relationships with major airlines serving hub networks offers the
greatest long-term prospects for shareholders, customers and
employees. By bringing these two companies together, and maintaining
the successful revenue guarantee code share business model, we have
the opportunity to create the leading regional airline in the United
States."