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
Pilot Also Reported That Due To A Fuel Leak, The Auxiliary Fuel Tanks Were Not Used On June 4, 2025, at 13:41 eastern daylight time, a Piper PA-23, N2109P, was substantially damage>[...]
Have A Story That NEEDS To Be Featured On Aero-News? Here’s How To Submit A Story To Our Team Some of the greatest new stories ANN has ever covered have been submitted by our>[...]
From 2023 (YouTube Edition): Reflections on War’s Collective Lessons and Cyclical Nature The exigencies of war ought be colorblind. Inane social-constructs the likes of racis>[...]
Aero Linx: Colorado Pilots Association (CPA) Colorado Pilots Association was incorporated as a Colorado Nonprofit Corporation in 1972. It is a statewide organization with over 700 >[...]
High Speed Taxiway A long radius taxiway designed and provided with lighting or marking to define the path of aircraft, traveling at high speed (up to 60 knots), from the runway ce>[...]
NTSB Prelim: Piper PA-23
See All