Hedge Fund seeks UA/DL Merger

[chucky]

Hedge Fund Pardus Pushes
For Delta-United Merger
By SUSAN CAREY
November 14, 2007 11:29 a.m.

A hedge fund with stakes in Delta Air Lines Inc. and United Airlines parent UAL Corp. sent a letter to Delta management Tuesday renewing its calls for airline consolidation and specifically advocating a merger of Delta and United.

In the letter, Pardus Capital Management LP, which holds 7 million Delta shares and 5.6 million UAL shares, said it believes "it is imperative" that Delta "enter into a merger transaction with another carrier given the rapid rise in fuel prices and the increased risk to the business as a stand alone entity." Pardus, which noted that the letter was a followup to a Sept. 7 missive to Delta, said it has consulted industry experts including airline consulting firm SH&E and Gordon Bethune, former chief of Continental Airlines Inc.

With their input, Pardus studied potential combinations of Delta with United, Northwest Airlines Corp. and Continental, according to the letter, signed by Karim Samii, Pardus president, and Shane Larson, principal. "Pardus believes the most attractive and practical combination would be a Delta and United Airlines combination," the letter said, because that pairing would produce $585 million in synergies achieve more network breadth than the other combinations.

Story

 

[LGA Fleet Service]

"Pardus believes the most attractive and practical combination would be a Delta and United Airlines combination,"

What they're really saying is this-

"Pardus believes their exposure to the No. 2 & 3 US Airlines will have their ass in a sling if the price of crude continues its upward climb and is in need of a quick cash out with maximum benefit to the firm."


Gotta' love hedge funds. :down:

 

[WorldTraveler]

And to think people here thought I've been on something for all these years.

I have - a profound sense of where this industry is going.

My Skymiles account is about to get a lot bigger.

 

[North by Northwest]

Dal+Ual = NW+Cal..+AA= checkmate


Hubs: Tri-parte
Tokyo
LA
MSP
DAL
DTW
ORD
JFK/EWR
MIA
HOU
----------------------------Dal/Ual
SFO
LAX (sorry bout that)
SLC
ORD
DEN
ATL
IAD
JFK
CVG
-----------

 

[donttouchthebeauty]

Dal+Ual = NW+Cal..+AA= checkmate


Hubs: Tri-parte
Tokyo
LA
MSP
DAL
DTW
ORD
JFK/EWR
MIA
HOU
----------------------------Dal/Ual
SFO
ORD
DEN
ATL
IAD
JFK
CVG
-----------

Its official - you must be smoking something, especially to think that CAL + NWA + AA would ever happen, no way it would pass sister - you also have the UAL and DAL hubs wrong, you forgot NRT, HKG, FRA, LHR, as well as HNL, SEA, LAS --- Puhlease.... Oh StrAAight and NHBB - where ART though??? Negotiating I suppose... LOL

 

[North by Northwest]

NRT, HKG, FRA, LHR, as well as HNL, SEA, LAS --

I didn't know Ual considered these hubs....There is a big difference between a HUB and a focus city. Do you know the difference?

Hub is a location with large amounts of connecting traffic. None of these fit...help me out here.

As for the transaction passing...that is out of your hands.

NW has two cards to play. A golden share/CAL, and it's Pacific Div.(AA) Do you honestly think AA will sit by and be relegated to a minor player in Asia...permanetly. I like that...NWA/CAL/AA just sitting by while allowing DAL/UAL to dominate the world. Dream on...

Don't get nervous yet...wait till Ual and Dal inks a deal...then you can get worried about the reaction. I am sure it will be swift.

I hope a deal is announced soon, I can't wait to see the response!

 

[CynicalResAgent]

NRT might be considered an international hub.

 

[StraaightTaalk]

Its official - you must be smoking something, especially to think that CAL + NWA + AA would ever happen, no way it would pass sister - you also have the UAL and DAL hubs wrong, you forgot NRT, HKG, FRA, LHR, as well as HNL, SEA, LAS --- Puhlease.... Oh StrAAight and NHBB - where ART though??? Negotiating I suppose... LOL

Even if it were true, a combined DL-UA will result in furloughs and reduction in duplicate infrastructures.

Since seniority means "last-in, first-out," it looks like you're going to have to start looking for another job. Better learn how to say "Paper or plastic" with a smile.

Or...I'm sure Auntie Anne's in your local mall is hiring. They will have to teach you how to count before you'll be able to use the register, though.

DTTB's Next Employer

 

[JAMAKE1]

LAS, SEA, NRT, HKG, FRA, LHR are not HUBS. They are crew bases. But NBNW did leave out LAX and SLC...

 

[donttouchthebeauty]

Even if it were true, a combined DL-UA will result in furloughs and reduction in duplicate infrastructures.

Since seniority means "last-in, first-out," it looks like you're going to have to start looking for another job. Better learn how to say "Paper or plastic" with a smile.

Or...I'm sure Auntie Anne's in your local mall is hiring. They will have to teach you how to count before you'll be able to use the register, though.

DTTB's Next Employer

God your naive... Do you honestly think I would be furloughed with thousands underneath me? First off a merger takes time - years in fact... Second, I have a union that protects my seniority and DAL does not. Third, well... it doesn't even matter b/c you are like talking to a brick wall, good luck out there straaight, if this transaction goes through, get ready b/c your gonna need every chip you can play, no one wants to merge with you, and you need to focus on your pay raise to set the bar for the rest of us - right???? So do you think DAL will go AFA now??? You are too easy, the dim bulb just stays turned on though..

 

[North by Northwest]

I swear..who needs the comedy club when we have Airline employees!

 

[Fly]

Beauty, you are the one who is naive.

For one, how would anyone here know your seniority unless you post it?

Two, AFA will have to be voted in by both airline groups because its a merger.

Three, AFA is all about DOH (so they probably will go DOH anyway...which they should).

Four, overlap means FURLOUGHS!

Five, and this is the BIG ONE....how do YOU know this isn't a Delta take over of United? They could be buying YOU! STAPLE!!!!!! And then......guess what?!? NO UNION! BUH BYE!






Honestly, you are the cruelest sounding person. I remember when United had 27,000 flight attendants and I was safe and sound. Yikes! I still rest under the 5,000 mark but it was scary to see them fall down to 16k. Be careful acting like this is something United controls...........THEY DON'T! United does NOT have a leg up on this. Mergers are NOT a great thing for employees (which proves to me that you may just be the one whos head is on the chopping block)


(my magic mirror say that Beauty has about 5 years seniority)



((if I'm wrong, she has 6 years seniority))



(((Beauty, the only way to get seniority is to WORK and AGE)))


((((Fly has seniority because her dad took her to 'bring your kid to work day' and they hired her' ))))

 

[Bear96]

Even if it were true, a combined DL-UA will result in furloughs and reduction in duplicate infrastructures.

Where is the duplication in the DL/UA route structure?

 

[Bear96]

Oops -- duplicate.

 

[Alice Cramden]

Looks like Pardus bought 3,000,000 DAL hedge funds on 2007-08-14
Today, 2007-11-14 Pardus bought another 4,000,000 AFTER he sent the letter to DAL. Totaling 7,000,000 DAL shares.

Oh, I forgot to mention Pardus bought UAL shares now at 3,000,000. Pardus has been buying and selling a bit of UAL shares, but the balance is now 3,000,000.

Nothing like having a stake in BOTH companies and sending a letter demanding a merger so you can watch both stocks go up! Amazing.

Too bad 90% of the DAL pilots sold their stock, maybe they could have had a little more say in their next contract!

Link: www.sec.gov
Under "Edgar"
Click on Companies and other filers
CIK type in 1337183

Forms:

13F-HR on 2007-8-14
13F-HR on 2007-11-14

There is no merger!