DL/NW Deal Closer

[chucky]

Northwest, Delta merger appears closer
Both airlines decline comment
February 5, 2008

BY MARGARITA BAUZA

FREE PRESS BUSINESS WRITER

A merger between Northwest Airlines and Delta Air Lines appears imminent, analysts say, and could set off a debate in Washington about the impact of such a transaction.

Aviation consultant Terry Trippler said a deal could be announced as soon as Feb. 15.


Ray Neidl of Calyon Securities said Delta is pressing hard to begin the merger process. He said he anticipates a combination that would be all stock.

The Atlanta Journal-Constitution reported Monday that Delta could walk away from merger talks if a deal isn't reached in the next two weeks. The report said Delta wants any deal to be reviewed by regulators under the Bush administration, which is considered to be business-friendly.

Link

 

[bagboy]

Northwest, Delta merger appears closer
Both airlines decline comment
February 5, 2008

BY MARGARITA BAUZA

FREE PRESS BUSINESS WRITER

A merger between Northwest Airlines and Delta Air Lines appears imminent, analysts say, and could set off a debate in Washington about the impact of such a transaction.

Aviation consultant Terry Trippler said a deal could be announced as soon as Feb. 15.


Ray Neidl of Calyon Securities said Delta is pressing hard to begin the merger process. He said he anticipates a combination that would be all stock.

The Atlanta Journal-Constitution reported Monday that Delta could walk away from merger talks if a deal isn't reached in the next two weeks. The report said Delta wants any deal to be reviewed by regulators under the Bush administration, which is considered to be business-friendly.

Link

If DL "could walk away from merger talks" why do they need NW help? Go it alone. Please.

 

[LukeAisleWalker]

If DL "could walk away from merger talks" why do they need NW help? Go it alone. Please.

I'm not exactly crazy about the idea either but I understand why they're doing it. (Or discussing it whatever the outcome may be.)
It's called Asia and most specifically China, one of the fastest growing economies in the world. Analsysts say it would take DL 20-25 years to get the Asian routes they'll get immediately w/ NW.
The other main reason, pricing, is yet to be determined. (I think there will always be upstart low cost airlines at least domestically, to take over.)

 

[chucky]

If DL "could walk away from merger talks" why do they need NW help? Go it alone. Please.

too late... this thing is gonna happen. Assume the brace position!! :blink:

 

[RobertD]

Northwest, Delta merger appears closer
Both airlines decline comment
February 5, 2008

BY MARGARITA BAUZA

FREE PRESS BUSINESS WRITER

A merger between Northwest Airlines and Delta Air Lines appears imminent, analysts say, and could set off a debate in Washington about the impact of such a transaction.

Aviation consultant Terry Trippler said a deal could be announced as soon as Feb. 15.


Ray Neidl of Calyon Securities said Delta is pressing hard to begin the merger process. He said he anticipates a combination that would be all stock.

The Atlanta Journal-Constitution reported Monday that Delta could walk away from merger talks if a deal isn't reached in the next two weeks. The report said Delta wants any deal to be reviewed by regulators under the Bush administration, which is considered to be business-friendly.

Link

"The report said Delta wants any deal to be reviewed by regulators under the Bush administration, which is considered to be business-friendly." Business friendly my irish a$$! How do they NOT know the next administration won't be "business friendly"? What a racket!

Ray Neidl of Calyon Securities said Delta is pressing hard to begin the merger process. He said he anticipates a combination that would be all stock. Can someone please explain what this means?

 

[FWAAA]

Can someone please explain what this means?

Happens with true mergers. It means that stockholders of both airlines, in exchange for their old shares of stock, will receive shares of stock in the new combined airline instead of cash. They can sell their stock, of course, but one airline won't be buying the stock of the other. No airline can afford to part with much cash in the days of $90+/bbl oil, so a cash purchase is probably out of the question.

 

[BABABOOY]

Newest info:
From the WSJ:

"Merger discussions between the two carriers have picked up steam, and major snags over how management of the combined Delta-Northwest airline would be structured were overcome earlier this week, the Journal said, citing sources who have been briefed on the negotiations."

"The newspaper also said on its Web site that preliminary talks between United Airlines parent UAL Corp UAL ] have grown more serious, citing a person familiar with the situation. "



http://www.cnbc.com/id/23037066

I guess if there is a good side to this, it would be great to see a Widget back on a 747.

 

[NewHampshire Black Bears]

Happens with true mergers. It means that stockholders of both airlines, in exchange for their old shares of stock, will receive shares of stock in the new combined airline instead of cash. They can sell their stock, of course, but one airline won't be buying the stock of the other. No airline can afford to part with much cash in the days of $90+/bbl oil, so a cash purchase is probably out of the question.

++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

FWAAA,
NO ONE knows better than you, when I say, that there are NO words currently in the english dictionary, that could portray, how fast I want this "First" consolidation among LEGACY carriers to....... commence.

(NOTICE I said ........"to COMMENCE" !!!!)

As you, I and MANY others know, Consolidation among the LEGACY'S is Looooong OVERDUE.

SO again I say, I'm ecstatic that "ACT-1" of the Drama/Mystery Play "Commence"

I further Understand, (per WSJ TODAY 2/6) that UAL/CO are getting MORE serious together.

EVEN BETTER, ...................MORE FUEL for the BIGGER legacy Picture !!!!

Though the Brain-Trusts at DL/NW/UA/CO publicly wont admit/comment on IT, then Perhaps...FWAAA, we can get the good folks(WORKERS) at these aforementioned airlines to ask themselves,........"What is American Airlines Making of all THIS ??....What if anything will they do ??......what NEGATIVE role might AA play in the "best of WELL made PLANS"(of DL/NW/UA/CO) ???

While I DETEST BUSH, Certainly NO ONE from DL/NW/UA/CO(In their Wildest Dreams) thinks that Texas BUSH(Doj)will Instruct Texas AA to "go quietly, and sit in the corner"

Because AA and UA would NEVER(due to ther size) be allowed to consolidate, I'll pass along this "exercise" to the Employees of BIG RED Only, to Ponder....................................."Fellow "Red Tails", "IT Ain't OVER, till the FAT Lady SINGS" !!!!!!!!


(ALL responces welcomed) !!!!!!!!

 

[flyhigh]

I would imagine that AA would ask that all Asian authorities that were awarded to anyone but them in the past 3 years be reallocated to them from the city of their choice. They may ask for certain parts of domestic systems to be reduced but on the aggregate, the only acces they lose out on is Asia.

 

[NewHampshire Black Bears]

I would imagine that AA would ask that all Asian authorities that were awarded to anyone but them in the past 3 years be reallocated to them from the city of their choice. They may ask for certain parts of domestic systems to be reduced but on the aggregate, the only acces they lose out on is Asia.

++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++


flyhigh,

In my opinion ONLY, you may have hit the nail squarely, on the head !!

CHINA-CHINA, and more CHINA.

Funny thing is, all the other 4 legacy's have those slots to give to AA, and no one would be disenfranchised, if "5" becomes "3" ( AA/UA/DL I'm guessing)

Peace/prosperity to ALL, at AA/UA/DL/NW/CO !!!!!!!!!!!!!

 

[LukeAisleWalker]

I guess if there is a good side to this, it would be great to see a Widget back on a 747.

I agree! (They will keep them won't they? They haven't been too crazy about them since 1977.)

 

[brokenwrench]

They have no choice but to keep them. Until they can be replaced with B777 LR's that is.

 

[ZMAN777]

FWIW,

Received some info from a "well-informed" UAL insider who shed some light on events driving this beast over the past couple weeks. Here's the short of it:

1. Anderson and Company's "ideal" match/link-up would be UAL but acknowledged that its chances of passing DOT/DOJ scrutiny would be a long-shot.

2. Also, UAL and Glenn Tilton weren't budging on UAL being the surviving franchise with HQ in Chicago. Apparently GT was insistent that the UAL name brand and Asian presence were huge trump cards to anything DAL could offer. Basically, UAL would be the driver in any sort of merger going forward.

3. The above being the case, Anderson's realistic approach to NWA was that the timing was as good as it was going to get, BUT....DAL would be the surviving entity in any DAL/NWA link-up with HQ staying in ATL. No details on hubs/domiciles were passed along.

4. Skeenland initially balked, wanting a bigger say in the surviving company and told Anderson and DAL that they weren't too interested in the terms.

5. NWA BOD tells Skeenland to go back and tell DAL that NWA is willing to deal.

6. UAL/CAL talks have been on-going expecting such an outcome with NWA's control of CAL soon to be a non-event.


That's all is I was given as to a snapshot of what has been going on the past couple weeks. I'm sure we'll hear much, much more in the days/weeks to come.

Cheers,
Z B)

 

[NewHampshire Black Bears]

Makes PERFECT/LOGICAL sense to me,...Uh....with the EXCEPTION of your source(which I BELIEVE IS 100% Good), failed to mention what Role....AA could have in all this ??

 

[jimntx]

Bears, give it a rest! AA may very well let all this activity slip right past them. Crandall ain't here no more. The current management are so very impressed with themselves, I don't think they see any reason to concern themselves with other airlines. Their argument is "Look at the huge bonusses we received last Fall. We must be doing great! There's no reason to change anything."