Air Transport World

Mesa drops bid for Atlantic Coast.(Regional News)(takeover)(Brief Article)

Mesa Air Group dropped its bid to acquire Atlantic Coast Airlines almost immediately after United Airlines with drew an MOU under which Mesa would have become United's Regional feeder at its Washington Dulles hub following a successful acquisition of ACA. Officials at ACA said they will continue with the plan to become a low-fare carrier based at Dulles.

The collapse of the 2.5-month hostile takeover effort followed a court decision in December preventing Mesa from moving forward with its effort to unseat the current ACA board of directors or buy the company pending resolution of ACA's litigation before the court. On the same day, ACA revealed that the US Dept. of Justice had opened an investigation to determine whether Mesa's proposed acquisition of the Regional violated US antitrust law and whether United Airlines played a role in the takeover effort. …

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