Legal challenge to SkyWest-ExpressJet deal

: Latest News; Friday, 06 August 2010

USA regional airline SkyWest, which agreed to acquire the shares of ExpressJet Holdings it does not already own for about US$133 million in cash, faces a court challenge on the buy from legal firm Tripp Levy.

SkyWest had said its subsidiary Atlantic Southeast Airlines would buy ExpressJet for US$6.75 a share, a premium of about 106 per cent on the stock's closing price at the time.

Shares of ExpressJet then more than doubled to US$6.65 in pre-market trade.

Now, Tripp Levy says ExpressJet may not have adequately marketed itself and SkyWest may be paying less than the business is worth, thus unlawfully harming ExpressJet shareholders.

Some analysts have said ExpressJet's true inherent value is at least US$8 per share.

Legal challenge to SkyWest-ExpressJet deal

Latest News

Friday, 06 August 2010

SkyWest had said its subsidiary Atlantic Southeast Airlines would buy ExpressJet for US$6.75 a share, a premium of about 106 per cent on the stock's closing price at the time.

Shares of ExpressJet then more than doubled to US$6.65 in pre-market trade.

Now, Tripp Levy says ExpressJet may not have adequately marketed itself and SkyWest may be paying less than the business is worth, thus unlawfully harming ExpressJet shareholders.

Some analysts have said ExpressJet's true inherent value is at least US$8 per share.