People Express Makes No Decision on Takeover Bids
After apparently considering takeover offers all day, directors of People Express adjourned late Tuesday without taking any action.
“Deliberations will resume Wednesday morning,” said a spokeswoman for the parent company of financially ailing People Express Airlines. Asked what deliberations meant, she said “they are considering various alternatives” that she didn’t identify.
The company announced last month that it would sell the airline in whole or part to alleviate its financial condition. Ever since, rumors have swept Wall Street about which companies were considering a bid or had made approaches to People.
The most persistent speculation has centered on Texas Air Corp., parent of Continental Airlines, which is said to have offered $9 to $12 per share for People. Other carriers that have been mentioned as being interested in purchasing all or part of People have been United Airlines, Western Airlines and Delta Air Lines.
None has commented publicly, however.
People Express, which also owns Denver-based Frontier Airlines and Britt Airways, suffered a loss of $58 million in the first 1986 quarter.
In over-the-counter trading on Tuesday, shares of People Express fell 12 1/2 cents to $9.37 1/2. It was the second most active issue on the over-the-counter market as 2.8 million shares were traded.