Who's telling the truth?

[NYCDelta]

I just listened to a replay of a flight attendant conference call from Thursday with our COO Jim Whitehurst. There was a Q & A at the end, and of course many merger questions.
Mr. Whitehurst stated that they met with the creditor's committee on Wednesday, and that they were still "very supportive" of a stand-alone Delta. He also stated that DL management talks to other airlines "all the time", and he's not sure where the NWA rumour started, because we are NOT in talks to merge with anybody.
Lastly, he stated that he is "surprised" at Doug Parker's increased offer, because Mr.Parker had earlier stated that DL was "over-valued". Of course, Parker also stated that he would never continue without DL management's full support. Then, he said he would work at gaining DL employees' support. Neither of those things have happened.

 

[jimntx]

Well, as the motto at the GWBush School of Mideast Analysis states,

"Who are you gonna believe? Me or your eyes."

 

[Gilding the Lily]

Lastly, he stated that he is "surprised" at Doug Parker's increased offer, because Mr.Parker had earlier stated that DL was "over-valued".

Value is in the eye of the beholder. It is possible that DL is less valuable as a stand-alone carrier and more valuable with the synergies created by US/DL merger. This can explain why Parker insists that DL over-valued itself while raising his own bid for DL.

Likewise, it is also possible that DL is more valuable as a stand-alone carrier.

 

[phasersonstun2]

...Lastly, he stated that he is "surprised" at Doug Parker's increased offer, because Mr.Parker had earlier stated that DL was "over-valued". Of course, Parker also stated that he would never continue without DL management's full support. Then, he said he would work at gaining DL employees' support. Neither of those things have happened.

Parker was led to believe certain things would happen based on intelligence. Obviously the same person in charge of Iraqi intelligence for Bush was giving Parker his intel.

 

[flyingcat]

So either Whitehurst is lying or someone else let lose with the NW talk.

Is this part of some Parker move?

Perhaps more ominous is that maybe the Delta execs support is fragmenting.

Perhaps Parker has some inside support and releasing the NW rumor was a way to for someone to somehow stop the Judas move.

Regardless the loyalty of both DL and US management is to themselves. Parker could have support of people who will be taken care of and given promotions.

I seem to recall that article on the two VPs who want to be CEO.

I wonder how ambitious they really are?

 

[MMB]

Value is in the eye of the beholder. It is possible that DL is less valuable as a stand-alone carrier and more valuable with the synergies created by US/DL merger.

synergies... And those would be... what? For Delta.

 

[autofixer]

CLT flying moved to ATL. Combined ops at BOS and LGA; huge. Combined ops at MCO; again huge. SLC and PHX? PHX could be a good jumping off point for Asia. Reduce capacity, ie. 50 seat RJS, gone! Combined ops at every little rinky dink station (mainline and express) around both systems, very big. New route possibilities due to stations already existing at end points of new routes (This has already happened at U-AWA, ie, PHL-PDX).

 

[Gilding the Lily]

synergies... And those would be... what? For Delta.

You are referring to this statement: "It is possible that DL is less valuable as a stand-alone carrier and more valuable with the synergies created by US/DL merger. This can explain why Parker insists that DL over-valued itself while raising his own bid for DL. Likewise, it is also possible that DL is more valuable as a stand-alone carrier."


I made that statement simply to acknowledge why Parker makes such statements. Obviously, Parker believes there are synergies and, thus, he believes that a US/DL deal would be greater than the sum of its parts. I was not making any statements regarding the truthfulness of his analysis of 'value' or proposed 'synergies'.

 

[PHLfa88]

Dealbook
When Money’s Involved, the Truth Can Take a Beating


By ANDREW ROSS SORKIN
Published: January 14, 2007
FACED with a hostile takeover bid from US Airways, the chief executive of Delta Air Lines, Gerald Grinstein, has played the role of Greta Garbo, publicly insisting for the past two months that his company wanted to be alone. Behind the scenes, however, his act has been much more Mae West, as his company made come-hither phone calls to rival Northwest Airlines to discuss a possible deal.

Mr. Grinstein even two-timed Delta’s staff, who have been proudly sporting red campaign badges that read “Keep Delta My Delta!†to rally support to remain independent. The chief of Delta’s pilots union, Lee Moak, told The Associated Press last month, “There’s no talks going on between Delta and any other airline.’

Mr. Grinstein is just the latest executive who, faced with an unsolicited offer, seems to be speaking out of both sides of his mouth. Too often, executives seeking to fend off unwanted takeovers make claims that end up looking foolish in hindsight. In their desperate attempt to ward off bidders, executives make every excuse in the book, but rarely say what they really mean: Show me the money.

Truth, it would seem, is the first casualty in a takeover battle.

 

[MMB]

I made that statement simply to acknowledge why Parker makes such statements. Obviously, Parker believes there are synergies and, thus, he believes that a US/DL deal would be greater than the sum of its parts. I was not making any statements regarding the truthfulness of his analysis of 'value' or proposed 'synergies'.

Thank you.