can Delta hold off U

[luv2fly]

It could be that the creditors and U have already come to some sort of agreement. These things just don't happen over night. It seems that Citycorp has jumped in awfully quick.

I am not referring to the US creditors, and it is highly doubtful the DL creditors knew anything of this.

 

[PhxMama]

Just curious, but why do you think the DL creditors were in the dark?

 

[Bear96]

World,

Why was a merger/acquisition a good idea when it involved DL buying someone or pieces of someone and is now suddenly the worst idea ever?

Hmmm. Interesting question.

WT?

 

[luv2fly]

Just curious, but why do you think the DL creditors were in the dark?

I would find it hard to believe the BK creditors committee knew the particulars of the proposal and the CEO of DL apparently did not.
There seems to be some disagreement on how the court will act. My info comes from a relative attorney. Maybe I misunderstood but here is the jist of what was relayed to me.
It is simply not a matter of who has the highest bid. As it was stated before, DL already has the exclusive right to reorganization. Yes the creditors committee might persuade management to lean one way or the other, but as long as DL can demonstrate it hasn't entrenced itself and it's plan is viable and fair, the court would be pressed to grant it.
US's proposal has many uncertanties. It is predicated on further BK negotiations to realize the synergies Parker alluded to and then there are the uncertanties of the DOJ. I may be mistaken but I believe it was stated that there is an approximate 35% overlap. This proposal is essentially a last minute deal that would require significant time to develop and digest, all of which would delay DL's exit from BK early next year.
I am by no means saying this will not happen, but I do believe the chance are higher that it will not.
It was also relayed to me that CO's higher ups do not give this much chance of succeeding and stated that the media, and Wallstreet are overhyping this for obvious reasons.

 

[PhxMama]

As I have said on different boards, if this is all hype and no substance, than Doug is not the man I thought he was. I really dont know if this will go through(I mean really how would I?)but I cant believe Doug would waste all this time on something that didnt have a chance of happening, especially when US/HP merger still has so much work to be done. Does anyone really think it was to raise the stock price? He already cashed in stock options BEFORE this was announced. There have been so many proposal meetings to inform employees of details and items that are still undecided, memos and webcasts that if this was so unrealistic he should have to reinburse the company for so many wasted manhours! I believe there was a member of the Board of Directors that resigned on the same day this proposal was announced. Coincidence? I dont think so. I think(and again how would I know) there might be a conflict of interest if there had been no resignation. I heard there have been long nights and lights burning at US-Tempe HQs. If Im wrong it wouldnt be the first time(ask my husband) but Im still standing on the side of the approval of the merger proposal.

 

[aislehopper]

Here was Jerry's statement on the question.

Delta's focus and goals remain unchanged
--------------------------------------------------------------------------------
November 16, 2006

In a memo to all employees Wednesday, Jerry Grinstein said Delta unexpectedly received from US Airways an unsolicited letter proposing the merger of our two carriers as part of Delta's emergence from bankruptcy. You have heard this news already since US Airways simultaneously made the letter public. Delta people have participated in the hard work and tough choices driving our company's already remarkable restructuring progress. I know you care deeply about what this means for our airline.

Our goal is for Delta to exit bankruptcy in the first half of 2007 as an independent, stand-alone company – not as a merged, acquired, or otherwise consolidated airline. We are working hard to regain an industry position of strength and leadership. From that position, we can best control our own destiny and pursue the direction that best benefits all Delta constituents, including Delta people, now and in the future.

Delta is obligated to review this proposal carefully, and we will do so. We already had declined discussions when US Airways approached us earlier this fall. Obviously, others are recognizing the success we’ve achieved together by reducing costs, increasing revenue, and improving customer products and services, along with other significant progress. You have good reason to be proud of the positive response you’re helping our company earn.

The Bankruptcy Court has granted Delta management the exclusive right until February 15, 2007, to create our own plan of reorganization. During this “exclusivityâ€￾ period, other parties are not allowed to submit competing plans. I’ve said before and continue to believe that the history of mergers in the airline industry is almost always one of failure with over-promise of synergies and under-delivery of results. (emphasis added) That continues to be my view.

Now more than ever, your support and commitment are key to the goal we all share: Delta’s long-term success. Thank you for remaining focused on our operations and taking care of Delta customers and each other, especially in the busy Thanksgiving travel season ahead.

Jerry Grinstein

 

[Barbell]

I’ve said before and continue to believe that the history of mergers in the airline industry is almost always one of failure with over-promise of synergies and under-delivery of results. (emphasis added) That continues to be my view.

Wasn't Jerry at the helm of Western when they were merged into Delta? Oh, I get it, it only works when Delta's the acquiring carrier. How could I have been so stupid?

 

[Fly]

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?

 

[CapnCockroach]

What's a "bafoon"? 🙄

 

[wings396]

The bottom line is, who really cares if Parker is able to pull this deal off or not. The Delta name will survive, and you will still have a job. What is the difference if your paycheck comes from ATL or PHX? Jerry is retiring anyway, and you have no idea who his replacement is going to be, and what they may have up their sleeve. The end result will be a bigger airline with more marketshare. The current DL management team has not shown that they are all that competent to begin with. They have screwed the employees just like everyone else has with pay and benefit cuts galore. So what really makes them a cut above the management team over at US? Are they really the ones that everyone at DL still wants running the show? Delta management hasn't had a clue for years either going from one CEO to another. Leo was a joker, and Jerry just took over the helm because they couldn't find anyone else who wanted to do it. Things at DL have been on the downhill slide ever since the purchase of Pan Am's assests years ago. Jerry has done what he was brought in to do,and that is the BK filing along with making all of the wage and benefit cuts. Stop fighting this takeover offer, and just let things take their course. I have gone thru several mergers, and BK's myself, and you must all realize that there is nothing that you can do except hold on tight and go along for the ride. 😉
A family member of mine worked for DL for nearly 40 years, so I have a great deal of respect and lots of memories of what DL USED to be like. Everyone knows that the Delta of today is a far cry from what it once was.

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 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:

 

[Mr Eagle]

Delta seeks creditor help to fend off US Air bid: report

NEW YORK (Reuters) - Bankrupt Delta Air Lines Inc. is trying to rally support from creditors to help fend off a takeover bid by US Airways Group Inc. , the Wall Street Journal reported on its Web site on Friday.

Delta Chief Executive Gerald Grinstein and other executives have held a series of conference calls with creditors to sift through terms of US Airways' offer, pressing creditors to back Delta's restructuring plan, the paper said.

The move could give Delta an early advantage in its fight to remain independent, the WSJ said.

US Airways proposed a $8 billion takeover of Delta on Wednesday after an attempt at merger talks failed earlier this fall.

US Airways, the No. 7 U.S. airline with over 35,000 employees, believes the combination will generate at least $1.65 billion in annual savings.

But Delta, the No. 3 U.S. airline with over 47,000 workers, said Wednesday it intends to emerge from bankruptcy as a stand-alone carrier.

US Airways officials were trying to arrange a meeting with representatives of Delta's official creditors committee, the WSJ said. It cited people familiar with the situation as saying that such a meeting could come as early as next week, with Delta officials expected to attend.

Delta was not immediately available for comment.

 

[luv2fly]

A family member of mine worked for DL for nearly 40 years, so I have a great deal of respect and lots of memories of what DL USED to be like. Everyone knows that the Delta of today is a far cry from what it once was.

So tell me. What airline is what it used to be like? The fact is every legacy airline has undergone a major transition recently and none of it has been good.

 

[Dog Wonder]

What's a "bafoon"? 🙄

"What a maroon."

Bugs Bunny

 

[aislehopper]

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?

He could simply be suffering from a case of RonAllenitis
(destroying his own company through overreaching.)

IMHO, LCC currently is primarily a domestic carrier. With the exception of a few international routes, they are competing with SWA, Frontier, JetBlue, AirTran, and potentially Virgin USA.

Acquiring DL will give them an immediate boost to their international scope in a short time frame. This should benefit them in the long run.

 

[pilot]

Only wants to begin speaking to DAL's creditors so he can start the process of buying certain pieces of DAL.

Which pieces is anyone's guess.