UAL buys 14% of ExpressJet

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02-18-2010, 12:30 PM

HSLD

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UAL buys 14% of ExpressJet

Actually it looks like warrants for 14% vs the actual shares - maybe someone with a finance degree could chime in and clarify the difference.

Schedule 13G

Anyone know what this is about?

02-18-2010, 01:24 PM

Clocks

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Old news. This is just the formal signing of the united deal. Part of the deal was xjt sold 2.7 million shares of itself to United for 1 cent each.

02-18-2010, 01:30 PM

PinnacleFO

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then skywest loaned UAL 80 million dollars, lets get the UAL/CAL merger over with already.

02-18-2010, 03:01 PM

fosters

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That's how you really make money in the airline biz, it's the legal form of pump and dump.

02-18-2010, 03:07 PM

Confused

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Quote:

Originally Posted by PinnacleFO

then skywest loaned UAL 80 million dollars, lets get the UAL/CAL merger over with already.

Despite the fact SKYW was able to sign some planes for this deal that was not the only benefit.

SKYW has AMAZING returns on this investment that have nothing to do with flying RJ's around.

02-18-2010, 03:22 PM

HSLD

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Quote:

Originally Posted by Clocks

Old news.

Maybe, but the SEC filing was dated yesterday. Do you have a link to the "original deal" to help me connect the dots? Thanks

02-18-2010, 03:46 PM

PropDriver

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Holding warrants basically gives UAL the ability to buy XJT stock at some date in the future for a price below the market price

02-18-2010, 04:18 PM

newarkblows

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It was a part of the original deal. So right now UAL owns some of us but CAL sold all of their position off... we are expensive and our competitors employees are willing to get paid half as much to fly a bigger airplane. I have my doubts about this place for the long run.

02-18-2010, 05:26 PM

dojetdriver

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Quote:

Originally Posted by HSLD

Maybe, but the SEC filing was dated yesterday. Do you have a link to the "original deal" to help me connect the dots? Thanks

Do a google search. You'll come up with multiple press releases dating back to last fall.

You'll ALSO find that SkyWest loaned UAL 80 million dollars. And before anybody flies off the handle, I KNOW that was a very sound business decision on SKW's part, and the amount of money their going to reap on that interest rate is insane. Assuming UAL is still around for the maturity of said loan.

And yes, I know, SKW's 80 million and XJT's 2.7 isn't really squat compared to a company like UAL with their overall value, market cap, cash, etc.

But it's pretty pathetic when the "regionals" are giving/loaning money to the legacies.