Quote:
But who really knows what’s going to happen, if anything materializes at all. And yes you are correct in the airline sector this is rare. Most regionals are privately held as it is. Spinoffs are not extremely rare in the overall market. In fact something is happening everyday somewhere.
https://www.sec.gov/cgi-bin/own-disp?action=getissuer&CIK=0000793733Originally Posted by DirkDiggler
When an investor acquired shares of SKYW “SkyWest Inc” they are purchasing shares of a holding company who owns 2 airlines. When you say “Skyw surely would have to tell share holders that they don't actually hold shares in the airlines because they are private.” They do disclosure this relationship in their SEC filings. There are three separate corporations here with three articles of incorporation, three sets of corporate bylaws. The stock certificates will each have their respective entity name on it. When you say “Selling 40% of ExpressJet would decrease earnings. “ well that would be true if ExpressJet were profitable. But it’s not. Hence the reason the stock price went UP seconds after the articles were published. Because it’s favorable. The end of the day all that matters is profit to the shareholders. Wipe out a losing entity and that’s a good thing. But who really knows what’s going to happen, if anything materializes at all. And yes you are correct in the airline sector this is rare. Most regionals are privately held as it is. Spinoffs are not extremely rare in the overall market. In fact something is happening everyday somewhere.