North by Northwest
Veteran
For anyone looking for a windfall with the give away of Northwest:
"McKenzie has viewed airline consolidation as likely for months. In January he wrote that airline consolidation "must result in lower costs, lower fares, better service, a rationalization of high cost capacity, & hence, a more efficient and profitable industry." He said then that the largest risk to consolidation is the airlines' ability to deal with labor concerns." (this is the real take on the scene) I love how they use NWA (with the strongest standalone future) as the in trouble example.
These hedge Funds know that the higher oil gets the riskier their returns become. Build Delta up with low cost NON union employees and there's your "merger benefits." Now they know getting rid of NWA employees is a pipe dream, but they have NOTHING to lose, which will result in a battle royal between NWA BOD/Steenland and NWA UNIONS/ Oberstar/Dem.Congress! (and incoming Dem.President)
http://money.cnn.com/news/newsfeeds/articl...17_FORTUNE5.htm
Here's how I see it. Wellington Capital owns 1/2 Billion of NWA stock, 150 Million of Delta, throw in Fidelity's hundreds of millions in shares of both. Pardus owns a large cut of Delta/United. Both hedge funds pushing the boards. NWA Bostock and a few others are chummy with Wellington/Blackstone. Steenland gets a pay out and a way OUT. Northwest gets sold down the river. While they hope to get rid of as many NW employees as possible and finally get their hands on all of Asia with low cost non union Delta.
Northwest employees sacrifice of BILLIONS of dollars ...gone, rewarding scumbag hedge funds and another airline. Zero benefit for Northwest long term or its employees.
I think this is a pipe dream, they really don't know how long and nasty this fight will get. For all those that think Oberstar is just mouth with no power to stop a merger...that's because you don't want to see it.
"In conversations with investors who are increasingly worried about a looming cash crunch, airline executives have begun emphasizing the strength of their balance sheets. Last week in presentations at the JPMorgan conference, senior Northwest, Continental, US Airways and Delta officials all emphasized what they believe to be their companies' more-than-adequate liquidity in light of triple-digit oil prices.
Which is just the opposite they have been saying about the need to merge.
http://www.usatoday.com/money/industries/t...sts_N.htm#chart
I can't wait till they announce it.
"McKenzie has viewed airline consolidation as likely for months. In January he wrote that airline consolidation "must result in lower costs, lower fares, better service, a rationalization of high cost capacity, & hence, a more efficient and profitable industry." He said then that the largest risk to consolidation is the airlines' ability to deal with labor concerns." (this is the real take on the scene) I love how they use NWA (with the strongest standalone future) as the in trouble example.
These hedge Funds know that the higher oil gets the riskier their returns become. Build Delta up with low cost NON union employees and there's your "merger benefits." Now they know getting rid of NWA employees is a pipe dream, but they have NOTHING to lose, which will result in a battle royal between NWA BOD/Steenland and NWA UNIONS/ Oberstar/Dem.Congress! (and incoming Dem.President)
http://money.cnn.com/news/newsfeeds/articl...17_FORTUNE5.htm
Here's how I see it. Wellington Capital owns 1/2 Billion of NWA stock, 150 Million of Delta, throw in Fidelity's hundreds of millions in shares of both. Pardus owns a large cut of Delta/United. Both hedge funds pushing the boards. NWA Bostock and a few others are chummy with Wellington/Blackstone. Steenland gets a pay out and a way OUT. Northwest gets sold down the river. While they hope to get rid of as many NW employees as possible and finally get their hands on all of Asia with low cost non union Delta.
Northwest employees sacrifice of BILLIONS of dollars ...gone, rewarding scumbag hedge funds and another airline. Zero benefit for Northwest long term or its employees.
I think this is a pipe dream, they really don't know how long and nasty this fight will get. For all those that think Oberstar is just mouth with no power to stop a merger...that's because you don't want to see it.
"In conversations with investors who are increasingly worried about a looming cash crunch, airline executives have begun emphasizing the strength of their balance sheets. Last week in presentations at the JPMorgan conference, senior Northwest, Continental, US Airways and Delta officials all emphasized what they believe to be their companies' more-than-adequate liquidity in light of triple-digit oil prices.
Which is just the opposite they have been saying about the need to merge.
http://www.usatoday.com/money/industries/t...sts_N.htm#chart
I can't wait till they announce it.