Continental in no hurry to sell ExpressJet stake-CEO

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Continental in no hurry to sell ExpressJet stake-CEO  =

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Tuesday June 3, 6:57 PM EDT =


HOUSTON, June 3 (Reuters) - Continental Airlines Inc. (CAL) is in no hurr=
y to sell its controlling stake in ExpressJet Holdings Inc. (XJT), Contin=
ental's top executive said on Tuesday.

Continental Chairman and Chief Executive Gordon Bethune also said he did =
not think the 53.1-percent stake in the regional airline would be sold to=
 just one buyer.

"I would doubt very seriously we would sell that in one piece. That's a c=
ontrolling interest," Bethune said on Tuesday, after he dedicated Contine=
ntal's new international terminal at Houston's Bush Intercontinental Airp=
ort. "At the same time, we are interested in maximizing its value. It's a=
 tremendously valuable piece of property."

A recent regulatory filing by ExpressJet, which No. 5 U.S. carrier Contin=
ental spun off last year, says the stake was worth $410 million.

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But that is not what interested buyers are offering, and Bethune said Con=
tinental was willing to hold out for better offers.

"We are certainly not going to do it unless it gives us optimum value. Th=
e market's going to tell you when to go. There's a lot of people interest=
ed in it, but way too cheap," Bethune said.

Continental has long said it plans to divest its stake in the feeder airl=
ine, which derives most of its revenue from an exclusive agreement to pro=
vide regional jet service from Continental's hubs.

Airline analysts recently said that Continental's improved cash position,=
 which was $1.18 billion at the end of the first quarter, gives it the fl=
exibility to hold onto its stake. =



=A92003 Reuters Limited. =


Roger
EWROPS

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