Mesa Air Group
offered to acquire rival
Atlantic Coast Airlines
( ACAI) in an all-stock deal.
Mesa offered to pay 0.9 Mesa shares for each share of ACA, giving the stock an $11.30 value, a 25% premium over its closing price Friday and a 35% premium over its average trading price since July 28.
The deal would create a regional airline with about 300 airplanes operating in the U.S.
Shares of ACA were up 52 cents, or 5.7%, at $9.54 in early trading Monday, while Mesa was halted at Friday's close of $12.54.