In a nutshell they are trying to replace the board at ACA so they can then proceed with a takeover. I have never heard of this tactic before.
UPDATE - Mesa seeking control of Atlantic Coast's board
Tuesday October 14, 9:17 pm ET
(Adds Atlantic Coast's response in paragraphs 5-6)
NEW YORK, Oct 14 (Reuters) - Mesa Air Group Inc.(NasdaqNM:MESA - News) said on Tuesday it would seek to take control of Atlantic Coast Airlines Holdings Inc.'s(NasdaqNM:ACAI - News) board, after the rival airline failed to respond to Mesa's unsolicited $494 million takeover offer.
Mesa, based in Phoenix, said it had filed with the U.S. Securities and Exchange Commission (News - Websites) to nominate seven directors to Atlantic Coast's nine-member board.
Should it win the board control, Mesa said it intends to start an exchange offer for all outstanding shares of Atlantic Coast and to deliver a draft merger agreement to Atlantic's board.
According to Mesa, Atlantic Coast currently has a "poison pill" which effectively prevents it from taking its offer directly to the shareholders of the Dulles, Virginia-based airline. Based on current valuations, Mesa's offer values Atlantic Coast at $10.89 per share in stock.
UPDATE - Mesa seeking control of Atlantic Coast's board
Tuesday October 14, 9:17 pm ET
(Adds Atlantic Coast's response in paragraphs 5-6)
NEW YORK, Oct 14 (Reuters) - Mesa Air Group Inc.(NasdaqNM:MESA - News) said on Tuesday it would seek to take control of Atlantic Coast Airlines Holdings Inc.'s(NasdaqNM:ACAI - News) board, after the rival airline failed to respond to Mesa's unsolicited $494 million takeover offer.
Mesa, based in Phoenix, said it had filed with the U.S. Securities and Exchange Commission (News - Websites) to nominate seven directors to Atlantic Coast's nine-member board.
Should it win the board control, Mesa said it intends to start an exchange offer for all outstanding shares of Atlantic Coast and to deliver a draft merger agreement to Atlantic's board.
According to Mesa, Atlantic Coast currently has a "poison pill" which effectively prevents it from taking its offer directly to the shareholders of the Dulles, Virginia-based airline. Based on current valuations, Mesa's offer values Atlantic Coast at $10.89 per share in stock.