War Heats Up Between Mesa, Atlantic Coast

The war of words surrounding Mesa Airlines' (MESA Quote) unsolicited takeover bid for Atlantic Coast Airlines(ACA Quote) got a little uglier on Tuesday.

In a complaint filed with the U.S. District Court for the District of Columbia, ACA alleged that Mesa and UAL (UAL Quote) unit United are working together to try to replace ACA's board of directors. ACA also said that Mesa executives have engaged in questionable stock trades, have conflicts of interest at the board level and haven't been upfront with investors in explaining why they want to take over ACA.

"United is a participant in Mesa's consent solicitation and proposed transaction. ACA alleges that Mesa's proposed plan to acquire all of the outstanding shares of ACA's common stock is nothing more than an attempt by Mesa and its undisclosed backer, United, to prevent ACA from establishing an economically viable, low-fare, low-cost airline," said ACA, in a statement. ...