SilverJet Is Up for Sale

SilverJet, the struggling all-business class airline, is apparently up for sale.  The company’s shares shot up 43% on word that the carrier is in talks to be acquired.   I cannot agree more with the analyst who summed up the situation thusly:  “If any prospective bidder does proper due diligence we see a strong probability that they will decide not to bid.”  Ouch.

The largest hunk of b.s. in the story comes from a fund manager who just happens to manage SilverJet shares and notes, “It would be a shame if just as the company gets within a hair’s breadth of proving the model somebody came out and managed to get it at a low price…”  Hair’s breadth?  If they were a month from profitability, wouldn’t that be evident in the due diligence process?  Wouldn’t people be jumping at the chance of picking up a profitable company for a song?  And why would management be looking to sell the airline for nothing even though it’s ever-so-close to profitability?  Shouldn’t shareholders be revolting?

All signs point toward this fact:  If they don’t get bought,  and that’s not looking likely, we will see a couple of hundred people stuck in Luton trying to get back to Dubai and New York.

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