Houston-based regional airline ExpressJet said today that a committee composed of independent outside members of its board of directors has unanimously rejected a proposal from St. George, Utah-based SkyWest to acquire the company for $3.50 per share in cash.
Formed specifically to evaluate the SkyWest proposal, the committee has started reviewing other alternatives, including entering talks with SkyWest and other potentially interested parties to evaluate a merger at a higher price. It also plans to review the possibility of a new capacity purchase agreement with Continental Airlines, ExpressJet’s main code-share partner.
ExpressJet said the committee’s decision to reject the offer hinged on several factors, including its belief that the $3.50 proposal doesn’t reflect the fair value of the company’s stock. It also said it believes that although a merger would produce meaningful “synergies,” it would not deliver synergistic value to ExpressJet’s shareholders.
