can Delta hold off U

[Fly]

I must say that is a pretty Goofy assesment. Forking over
8 BILLION bucks to trim down and eliminate a competitor is a bit much. :huh:

I don't know, American seemed to think it was a pretty good idea in 2000.

 

[wings396]

I don't know, American seemed to think it was a pretty good idea in 2000.

I don't think that they put out 8 Billion in order to do it. The price that AA paid for TW, was a fraction of this offer. :huh:

 

[flyhigh]

the thing about this deal, much like a leveraged buyout, is that Delta may end up helping pay for its own buyout. In a leveraged buyout, you typically see the buyer use cash in the bank and assets to pay off the loans use to purchase an entity. In this case, US would be forced to let go of some slots at both LGA & DCA, the Northeast Shuttle and possibly other assets. dditionally, you may see them sell or IPO Comair. With that, and the fact that ~$4B of this is stock, US could see a lot of this financed on day 1.

Still don't think it will go through, but could be interesting. I'm curious as to whether United is going to bid on CO or DL. One reason US has stated they are going after DL (instead of the other ch 11 carrier) is that DL has a lot more it can shed to pretty it up financially vs NW who is quite thin already. NW's problem is relavance in the marketplace more than anything driving results. DL has a lot of relavance, just doesn't have its house in order.

 

[Charlie_Tuna]

Does anyone suppose the main purpose here is that Dougie wants to buy Delta simply to put them out of business? Take the routes and planes and dump the rest? Eliminate the competition?

I think he wants to rule the world