Thread: Skywest v2.0

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rickair7777 , 12-09-2017 01:56 PM
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rickair7777
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Quote: It is very abnormal for subsidiaries of public companies to be considered privately held.
If you can bring something to the table I’m ready to learn something about
Skyw.
Otherwise selling a portion of xjet to ual would dilute current shareholders. (Not happening)
Ual could buy a share in exjet if it is spun off from the SKYW ticker and current skyw shareholders given an equity stake.
Or divesting would be an option for UAL. BUT if they don’t want to own a majority they would need someone else to buy 51%. (Probably Commutair).

Any examples of what you speak?
A public company has shares on the open market. A private company still has shares/ownership, which may be owned by one or more private parties. Said private parties can generally make deals on their own, unless it's illegal or it's large enough to get the attention of the trustbusters at DOJ.

Inc can sell off a worn-out timed out CRJ 200 if it wants to. The BOD (elected by shareholders) provides oversight on behalf of shareholders.

Inc can also sell off other assets, such as part or all of XJT. Shareholders shouldn't be diluted, the value of their stock simply shifts from equity in XJT to cash (which can be retained, used for growth/aquisition/expenses, or distributed to shareholders). The BOD should provide oversight to ensure the shareholders didn't get a bad deal. Not all shareholders may agree on any particular transaction. If enough of them are unhappy, they can replace member(s) of the BOD to try to get what they want.