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ExpressJet IPO postponed
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September 17, 2001: 6:47 p.m. ET
No. 2 U.S. life insurer Prudential unsure whether to float $3.9B IPO in 4Q
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NEW YORK (CNNfn) - Continental Airlines decided Monday to postpone the $300 million initial public offering of unit ExpressJet Holdings Inc.
Continental (CAL: down $19.59 to $20.05, Research, Estimates) is still deciding whether to float the IPO, a spokesman said. In August, ExpressJet filed to sell 18.75 million shares at $15 to $17 each via lead underwriters Salomon Smith Barney and Morgan Stanley.
ExpressJet had planned to trade under the New York Stock Exchange ticker symbol "XJT."
Last week, hijackers took control of four airplanes and crashed two into the World Trade Center, another hit the pentagon and the last crashed in Pennsylvania.
Airline stocks fell sharply Monday, as industry officials warned they are experiencing a cash crunch due to the public's reluctance to return to the air.
These recent events caused Continental to delay the IPO, the spokesman said. Houston-based Continental also plans to chop its staff and schedule by 20 percent.
Prudential IPO in 4Q?
Prudential Financial has yet to decide whether it will still float its $3.9 billion initial public offering in fourth quarter but the insurer will pay benefits for all insurance coverage in force.
Prudential said Monday it will not apply war exclusions for last week's attack on the World Trade Center. With $21.7 billion in equity, Prudential said the WTC attack will not have a material impact on its financial position.
Insurers stocks fell Monday in response to the attack on the WTC. Claims will likely reach into the billions of dollars, and could even surpass the costs of Hurricane Andrew in 1992. Insurers paid over $19 billion for that natural catastrophe. U.S.-based insurers, as well as international providers, are expected to foot the bill which some claim could reach from $10 billion to as much as $30 billion in claims.
In April, Prudential filed to raise $3.9 billion in an initial public offering. Newark, N.J.-based Prudential Financial plans to sell 89 million shares via lead underwriters Goldman Sachs and Prudential Securities Inc.
The insurer has yet to announce the price range of the shares.
The Prudential offering was on track to go public in the fourth quarter. The N.J. Commissioner of Banking and Insurance was preparing to rule whether Prudential could go public.
"We are still making preparations for an IPO," Prudential spokesman Bob Defillippo said. "But we are not making any determinations on whether the event of last week will have an impact on our plans to go public." 
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