Alaska To Make Bid For Hp

Well if that is the result - why is Business Week reporting it live this morning?
 
The report last week said that Business Week was to publish this report in "next week's" edition... i.e. today.

The article is virtually identical.

Are you suggesting that ALK is lying to the SEC?
 
funguy2 said:
Are you suggesting that ALK is lying to the SEC?
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Only to play devil's advocate....

The final statement of the AS SEC filing says "The statements made herein speak only as of today. We disclaim any obligation to update or revise these statements after the date of this report in the event of changes in our plans or circumstances.

Jim
 
Fair enough Boeing Boy... If the article had contained any "new" news, I might agree... But the article was virtually the same, despite the fact that AWA shares jumped from $5.50 to $6.50 since the initial report... If there was something new to say, I would have expected ALK to offer more than a $.50 premium...

I am no expert, but when deals like this come along, they seem to come with a very high premium for shareholders... remember UAL offered $60 for U, and U was trading around $40 IIRC... Thats a 33% premium... which would suggest that ALK would have to offer around $8.50-$9/share....
 
Agreed 100%, funguy (well, offering a $20 premium on a $40 stock is a 50% premium instead of 33% ;) ). I suspect that AS was merely protecting themselves with the language in case they did ultimately decide to make an offer and nothing more.
 
funguy2 said:
For some reason I thought UAL offered $60 for U...
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Yes but BoeingBoy was pointing out that $60 was a $20 premium over the $40 amount, therefore a 50% premium vs. 33%. Fuzzy math... ;)
 
That's OK funguy - the older I get the more of those "fuzzy" moments I have.

Now what were we talking about??? :lol:

Jim
 
Alaska does not want anything to do with HP. This (HP/U merger) is going to be a big enough mess without Alaska getting involved.

U is in a near-term crisis and needs the HP merger to happen in order to survive. HP is fine in the short-term, but faces a mid and long term crisis unless they change their marketshare and competitive strategy. So... the U merger makes sense to HP as long as they use OPM (other-people's-money) and limit their financial exposure. Alaska, on the other hand, faces neither a short, mid, nor long term crisis and prefers not to create one for itself.
 
Hehe... Thanks for the slack guys... obviously I went with $40 being 2/3's of $60... but going the other way, well that would be a 50% premium. Of course, my recollection is fuzzy on the exact trading price of U at the time. I do remember it shot up immediately on the announcement, though.