WSJ: Delta, TPG Assessing Bids for American Airlines

[Veritas]

In the Wall Street Journal:

Delta, TPG Assessing Bids for American Airlines Parent

Delta Air Lines Inc. and private equity firm TPG Capital are separately assessing possible bids for American Airlines parent AMR Corp., with hopes that AMR's troubles present another opportunity for airline consolidation, people familiar with the matter said.

<snip>

TPG Capital prefers to work with a strategic partner for a possible American Airlines investment, some of the people said. TPG, which has expertise in the airline industry, has approached AMR about its interest, they said.

<snip>

Delta has conducted an antitrust analysis on a possible tie-up with AMR and concluded that with some concessions, such a deal has a good chance of getting approval from regulators.

<snip>

TPG made its first investment in the airline industry in 1993 with Continental Airlines, which it helped turn around in the 1990s. TPG partner David Bonderman was chairman of Continental for a time. TPG was also a part of a consortium that tried to acquire Qantas Airways Ltd. but it didn't obtain the necessary shareholder approval for the deal in 2007.

TPG invested in America West International, which U.S. Airways Group Inc. acquired in 2005. TPG managing partner Richard Schifter was on the board of America West and was on the U.S. Airways board from 2005 to 2006.

TPG has past ties with American Airlines. In 2009, the private equity firm teamed up with AMR to possibly invest in Japan Airlines Corp. but the deal never came to fruition.

 

[Frank Szabo]

In the Wall Street Journal:

Delta, TPG Assessing Bids for American Airlines Parent

That'd be one way to get rid of our parasitic "representation".

 

[fltguymk]

Very Interesting... Why not! Would much rather be with DL than any other!!

 

[damajagua]

Very Interesting... Why not! Would much rather be with DL than any other!!

Can't imagine the government allowing this to happen.

 

[FWAAA]

I doubt the combined AA-DL would get to keep any of AA's LGA slots but the new T8 at JFK could finally be built out to accomodate both. At LAX, T-4 and T-5 are next door and connected behind security with the underground tunnel. Much better than combining US and AA.

 

[DNTULSA]

It's kind of like preferring one tribe of cannibals who is going to eat you over another.

The end result is the same!

It is going to be bad enough if AA survives without a merger.

It will be much worse with a merger.

 

[texflyer]

Not buying it,and I don't care what off the record sources Wall Street quotes. I do possible see TPG investing in a new stand alone AA post BK.

 

[mike7863]

take it from a ex-twaer, you dont wont to be merged in bk. before aa got us we had 20,000 employees. after we probly have 2 or 3 thousand if that. so trust me you dont want this to happen.

 

[Super FLUF]

A buyout by either suitor seems very implausible.

I don't see a DAL offer passing DOJ scrutiny.

Either suitor would have to be voted in by the creditor's committee, which I see as unlikely.

Lastly, Horton still has 16 months to get a plan together, turn the airline around, and exit Ch. 11. This BK seems to have been set up with an emphasis in fending off any takeover offers.

Just my 2 cents.

 

[Duke787]

http://www.google.com/hostednews/ap/article/ALeqM5gN5MiJ9Pl0Bky2E-LoXSaYUjjRpg?docId=2e6d50a928bd435a99ca0fad3869521b

Delta's mechs are non-union? If we merged we would have to vote on union representation?

 

[FWAAA]

http://www.google.com/hostednews/ap/article/ALeqM5gN5MiJ9Pl0Bky2E-LoXSaYUjjRpg?docId=2e6d50a928bd435a99ca0fad3869521b

Delta's mechs are non-union? If we merged we would have to vote on union representation?

To use round numbers, DL has about 6000 M&R compared to AA's approximately 11,000, and yes, there would be an election. The real shame would be if the TWU won that election.

 

[Silver Meteor]

To use round numbers, DL has about 6000 M&R compared to AA's approximately 11,000, and yes, there would be an election. The real shame would be if the TWU won that election.

Can't picture Delta really wanting all of AMR. Portions of it yes, all of it no. There is more to this than we are initially reading. Interesting to see how this plays out.

 

[Mr Red]

It's kind of like preferring one tribe of cannibals who is going to eat you over another.

The end result is the same!

It is going to be bad enough if AA survives without a merger.

It will be much worse with a merger.

More like a pack of HYENAS !

 

[eolesen]

If 35% of a combined workgroup is represented, it triggers an election.

TPG's interest is not unexpected. Won't be surprised if someone like Citi or IAG steps up with interest as a strategic partner.

 

[OldGuy@AA]

To use round numbers, DL has about 6000 M&R compared to AA's approximately 11,000, and yes, there would be an election. The real shame would be if the TWU won that election.

You won't have to worry about it. Delta is non union and there is no way they will allow any union members (past or present) to contaminate their workforce. They are seeking to buy us to eliminate us from competition. Think about it......... We are the lowest paid (mechanics anyway) in the industry and we do our own maint. This is already tough to compete with and the wages and benefits will get worse really soon. If they buy us out and get rid of us then there is a bigger piece of the pie for them. If Delta buys us out, we are not going to have jobs. Just my opinon.