Is Dougie going home empty handed?

WorldTraveler

Corn Field
Dec 5, 2003
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Statement on Behalf of Delta Air Lines Following Presentation by US Airways
Thursday November 30, 5:09 pm ET


ATLANTA, Nov. 30, 2006 (PRIME NEWSWIRE) -- Delta Air Lines today issued the following statement:
``Consistent with our obligation to review US Airways' unsolicited proposal, today we, along with representatives of our Creditors' Committee, met to listen to US Airways' presentation concerning US Airways' proposal to merge with Delta.

``While we will fulfill this obligation, we will, as we have stated, continue to progress toward filing our stand-alone plan by the end of the year, which would have us emerge from bankruptcy as a highly competitive, independent and financially sound airline by mid-2007. Our plan is working and we have tremendous, hard-won confidence in it.''

Delta Air Lines (Other OTC:DALRQ.PK - News) offers customers service to more destinations than any global airline with Delta and Delta Connection carrier service to 290 destinations in 46 countries. With more than 50 new international routes added in the last year, Delta is America's fastest growing international airline and is a leader across the Atlantic with flights to 28 trans-Atlantic destinations. To Latin America and the Caribbean, Delta offers more than 400 weekly flights to 49 destinations. Delta's marketing alliances also allow customers to earn and redeem SkyMiles on more than 14,000 flights offered by SkyTeam and other partners. Delta is a founding member of SkyTeam, a global airline alliance that provides customers with extensive worldwide destinations, flights and services. Including its SkyTeam and worldwide codeshare partners, Delta offers flights to 445 worldwide destinations in 92 countries. Customers can check in for flights, print boarding passes and check flight status at delta.com.
 
Nice to see all it takes is a threat of a hostile takeover to pull all you people together. More power to you.
 
World, you're kidding right? You don't honestly believe that all they have to do is say that they listened and don't like it and the deal is done?

One of the primary reasons Delta fought so hard (or at least Jerry's team did...Mullin & Co said they were) to avoid ch 11 was because you lose control of the company. This type of situation was exactly what they were referring to. It's the creditors that US was presenting to. Having the Delta mgmt team there was for the creditors benefit. While most creditors know the business, someone representing Coca-Cola might not as well and therefore would rely on Delta's mgmt to ask the tough questions that should be asked (i.e regulatory hurdles).

More interesting thought was this headline that broke shortly after US & DL's statements were released:
"AirTran CEO Is Interested In US Airways, Delta Assets"

Couple that with WN's interest and some creditors might be swayed. The big ticket that US needs to woo over is still Boeing who, interesting, is chairing the committee. With the A350 pretty much by the wayside leaving US to choose the 787, US could use a major order for that (which DL needs to do anyway with the 767's getting long in the tooth) as the carrot to sway Boeing. Loyalty to a longtime customer is not something Boeing will use as a reason to stick with DL. If the deal US is proposing could provide an order quick for more planes...than they would be swayed. Add to that the fact that the M80 capacity at DL will need to turnover soon as well...US could be moved to go Boeing.

Just because DL's people say they have "hard-won confidence" in their plan doesn't make it so. How does that explain certain creditors forming a committee supporting the merger? It doesn't. It means that at best/worst (depending on perspective) DL will likely have to appease them in some way to get their vote of confidence.
 
United Chicago,
you will proven wrong now as you were 2 years ago when I was beating you up. Wanna give up now or shall I just keep pounding away. I'll be sure and quote you and your inaccurate prophecies when they are ALL clearly shown to be wrong.

Still waiting for backup to your claim...

A depth of intelligence that goes well beyond the press releases. ©

That's funny as you're quoting a press release...
 
Dougie did not go home empty handed. This is not over by a long shot.

Did you honestly think that the Delta management was going to roll over and call defeat??? You are more delusional than this thread if that is the case.

Doug knows it is not going to be easy.

There were hopes that the management would agree and that it would be much smoother.

Now it WILL be a hostile takeover as management DOES NOT HAVE a say...the BK court and the creditors will be the deciding factor NOT Delta.
 
Dougie did not go home empty handed. This is not over by a long shot.

Did you honestly think that the Delta management was going to roll over and call defeat??? You are more delusional than this thread if that is the case.

Doug knows it is not going to be easy.

There were hopes that the management would agree and that it would be much smoother.

Now it WILL be a hostile takeover as management DOES NOT HAVE a say...the BK court and the creditors will be the deciding factor NOT Delta.
US Airways, Delta Air, Creditors Discuss Merger Bid (Update3)

By Mary Schlangenstein and Eric Torbenson

Nov. 30 (Bloomberg) -- US Airways Group Inc. Chief Executive Officer Doug Parker pitched his $8.43 billion hostile bid for Delta Air Lines Inc. to Delta executives and members of the bankrupt carrier's creditors committee.

Parker, meeting with Delta and the committee for the first time since his Nov. 15 offer, told the creditors in New York they would do better with his plan than Delta's strategy to stay independent.

US Airways and Delta are each courting the nine-member creditor committee because it will negotiate terms of any plan to exit bankruptcy. The panel also heard from Delta on its plan to emerge from Chapter 11 next year as a standalone carrier.

``It's ultimately the creditors of Delta who have got to make the decision,'' said Douglas Baird, a University of Chicago bankruptcy-law professor. ``The obligation on the part of Delta is to make sure information is fairly presented to them.''

Parker, 45, reviewed his offer at today's meeting and ``had a chance to engage in discussions on the many facets of this proposal'' to acquire Delta, the third-largest U.S. airline, Tempe, Arizona-based US Airways said in a statement.

Delta's Statement

Delta, in its own statement, said it ``met to listen to US Airways' presentation'' and didn't elaborate on what comments, if any, its executives made. ``We will, as we have stated, continue to progress toward filing our stand-alone plan by the end of the year,'' Delta said.

Both companies declined to comment beyond the statements.

``This was a meeting that had to happen,'' Baird said in an interview. ``You can't infer from what they are saying that they are doing anything more than the dance their attorneys tell them to do. This kind of dance goes on for a long time.''

A group of Delta bondholders that has formed its own committee hired attorney Alan Kornberg of Paul, Weiss, Rifkind, Wharton & Garrison LLP to represent them in talks on the offer. The bondholders aren't represented on the creditors committee.

US Airways, the seventh-largest U.S. airline, went public with its hostile offer of $4 billion in cash and 78.5 million US Airways shares in hopes of winning creditor support after Delta CEO Gerald Grinstein initially rejected the bid.

Delta creditors would get a 45 percent stake in the merged company, which would surpass AMR Corp.'s American Airlines as the world's biggest carrier, based on miles flown by paying passengers.

US Airways' plan for today's meeting was to ``walk them through our transaction, answer their questions and explain to them why we think our assumptions are the right ones to look at the value of our proposal,'' Kelly Sullivan, a spokeswoman for the airline, said before the session.

Savings, Revenue

Delta has said remaining independent will produce more value for creditors. Grinstein, 74, is working to lower costs by $1.9 billion a year and boost annual revenue by $1.1 billion. The Atlanta-based carrier filed for bankruptcy in September 2005.

Until Feb. 15, Delta has the exclusive right to file its plan to exit bankruptcy protection. Delta has said it expects to file such a plan by the end of December.

Earlier today, Delta said its October net loss narrowed to $88 million from a loss of $301 million a year ago. It reduced costs to fly each seat a mile and boosted per-passenger revenue in October, the carrier said.

``Delta is making strong progress on every front,'' Chief Financial Officer Edward H. Bastian said in a statement that also repeated Delta's intent to leave bankruptcy as a ``stand- alone competitor.''

US Airways shares were unchanged at $56.76 at 4:22 p.m. in New York Stock Exchange composite trading. Shares of Delta rose 6 cents to $1.33 in over-the-counter trading.

Delta's 7.9 percent notes maturing in 2009 were unchanged at 60 cents on the dollar, according to Trace, the bond price reporting system of the NASD. The yield was 28 percent.

The case is In re Delta Air Lines Inc., 05-17923, U.S. Bankruptcy Court, Southern District of New York (White Plains).
 
What I wouldnt give to be a fly on the wall during those meetings! Ive seen Doug in action and not only is he very confident, nothing ruffles his feathers. He will listen intently to any rebuttals and and explain how a merger would benefit everyone. He would have done it calmly and with facts to back up his words, at least a good analytical forecast. He would have done his homework and would have prepared for almost any question or anything that has been mentioned on these boards. They dont call him boy genious for nothing! Although, I dont expect to hear much about what transpired I am hoping someone will leak something. I really think a merger financially would be a good thing but too much division within a group of employees always make working that much more stressful. If and a big IF this happens I hope everyone keeps their goals in sight. Both companies are made up of many high quality professionals and I hope their professionalism shines thru if this happens. Regards to all, Mama
 
If Delta issued a statement that said "Stand On Your Head" the "DELTOIDS" and WT would.

"Follow The Money" not press releases.

Regards
DC