Judge blocks Mesa Air consent solicitation effort

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I knew it was UAL going thru the back door to keep its regional at IAD an=
d stop the low fare start-up.  I hope this hurts thier chance and the $1.=
6B itstring to get from the Gov. =




Judge blocks Mesa Air consent solicitation effort  =

 =

 =

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Thursday December 18, 8:18 PM EST =


NEW YORK, Dec 18 (Reuters) - A U.S. District Court judge on Thursday issu=
ed a preliminary injunction blocking Mesa Air Group Inc.'s (MESA) effort =
to replace Atlantic Coast Airlines' (ACAI) board as part of its unsolicit=
ed takeover attempt of the regional airline.

Meanwhile, Atlantic Coast said the U.S. Justice Department has opened an =
antitrust probe into Mesa's $495 million takeover offer, joining a simila=
r probe by District of Columbia antitrust officials.

A Mesa spokeswoman was not immediately available to comment.

But the two events represent a setback in the attempt by Phoenix-based Me=
sa to acquire Atlantic Coast, of Dulles, Virginia, and form a more powerf=
ul regional airline.

The injunction was handed down by U.S. District Court Judge Rosemary Coll=
yer, who determined Atlantic Air had raised enough antitrust concerns per=
taining to Mesa's takeover bid that its lawsuit against Mesa should be al=
lowed to continue, court documents showed.

  =


Collyer, a judge in the U.S. District Court for the District of Columbia,=
 said a deal struck last month between Mesa and UAL Corp.(UALAQ), the par=
ent company of United Airlines, was of particular concern.

Specifically, Collyer said the deal, which would permit Mesa to provide r=
egional service for United Airlines should it acquire Atlantic Coast, mig=
ht violate the Sherman Act because it potentially restrains Atlantic Air'=
s ability to launch a low-cost competitor to United.

Earlier this month, Mesa Air filed a consent solicitation seeking shareho=
lder support to replace Atlantic Coast's board with its own nominees.

Mesa Air Chairman and Chief Executive Jonathan Ornstein said on Thursday,=
 speaking at the Wings Club before the decision was handed down, that sho=
uld his airline lose its motion to dismiss the preliminary injunction req=
uest, it would have to evaluate whether to appeal or not.

The airline has promised to launch a hostile tender offer to acquire Atla=
ntic Coast, but to date has not done so.

Mesa has offered to acquire Atlantic Coast for 0.9 of a share of its stoc=
k, valuing the airline at $10.91, based on closing prices on Thursday. At=
lantic Coast has repeatedly rebuffed that offer.

On Thursday, Atlantic Coast's stock closed at $10.45, up 5 cents on Nasda=
q. Mesa's stock ended at $12.12, up 16 cents, on Nasdaq. =



=A92003 Reuters Limited. =


Roger
EWROPS

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