Wed, Apr 13, 2016
Says Stock Price May Be Undervalued By Purchaser Alaska Airlines
Two law firms have opened investigations into the sale of Virgin America to Alaska Airlines announced last week.
On April 4, 2016, VA and ALK jointly announced the acquisition of VA, pursuant to which VA shareholders will receive $57.00 in cash for each VA share they own.
The former Attorney General of Louisiana Charles C. Foti, Jr., Esq. and the law firm of Kahn Swick & Foti, LLC ("KSF") are seeking to determine whether this consideration and the process that led to it are adequate, or whether the consideration undervalues the Company.
In addition, WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the Board of Directors of Virgin America in connection with the proposed acquisition.
WeissLaw is investigating whether VA's Board acted to maximize shareholder value prior to entering into the agreement. Notably, ALK announced that it expected the transaction to be immediately accretive to adjusted earnings per share in the first full year. In addition, ALK announced that it expected a 27% increase in annual revenue. Further, the acquisition of VA will:
- Expand ALK's presence in the West Coast
- Improve ALK's access to valuable slots and gates in New York and California
- Increase ALK's fleet to 280 aircrafts, and include a new fleet of WiFi-enabled, technology-friendly aircraft
- Increase ALK's daily departures to 1,200
- Increase ALK's customer base
- Strengthen ALK as a competitor to the four largest U.S. airlines.
WeissLaw is investigating whether VA's Board acted in the best interests of VA's public shareholders to maximize shareholder value prior to entering into the agreement with ALK.
(Source: News releases)
More News
Aero Linx: JAARS Nearly 1.5 billion people, using more than 5,500 languages, do not have a full Bible in their first language. Many of these people live in the most remote parts of>[...]
'Airplane Bounced Twice On The Grass Runway, Resulting In The Nose Wheel Separating From The Airplane...' Analysis: The pilot reported, “upon touchdown, the plane jumped back>[...]
"Burt is best known to the public for his historic designs of SpaceShipOne, Voyager, and GlobalFlyer, but for EAA members and aviation aficionados, his unique concepts began more t>[...]
"Polaris Dawn, the first of the program’s three human spaceflight missions, is targeted to launch to orbit no earlier than summer 2024. During the five-day mission, the crew >[...]
There Are SO Many Ways To Get YOUR Aero-News! It’s been a while since we have reminded everyone about all the ways we offer your daily dose of aviation news on-the-go...so he>[...]