LCC Proposes $8B merger with Delta

[rf1r]

NEW YORK (CNNMoney.com) -- US Airways Wednesday made a surprise $8 billion offer to buy its bigger rival Delta Air Lines, a bid that could spark a round of mergers leaving the United States with two or three fewer major airlines.


CNN

 

[Charlie_Tuna]

Just on CNBC

US Airways Makes $8B Bid for Delta
Wednesday November 15, 6:22 am ET
US Airways Makes $8 Billion Cash and Stock Offer for Delta Once Delta Emerges From Bankruptcy


TEMPE, Ariz. (AP) -- US Airways Group Inc. said Wednesday it has made an $8 billion cash and stock offer for Delta Airlines Inc. in a deal that would create one of the world's largest airlines.
The offer to buy Delta once the Atlanta-based airline emerges from bankruptcy protection would give Delta's unsecured creditors $4 billion in cash and 78.5 million shares of US Airways stock.

If completed, the airline would operate under the Delta name and serve more than 350 destinations across five continents.

AND michael Boyd is pissed and venting on CNBC

They also said Usairways approached Delta in the spring but Delta wasn't interested so USAirways has now decided to go public with it. Sounds like a hostile bid.

 

[USCREW]

WOOHOO!!!!! The mother of all mergers.

 

[dc3fanatic]

WOOHOO!!!!! The mother of all mergers.

Alot of delta execs are from US Airways before the first acquisition. I doubt it's hostile. I bet it's been in the making since the acquisition.

Watch for Delta to 'take care' of these execs, even thought the top dogs already have a shitload of money.

(People below the top (say) 30 won't be taken care of though.)

Oh wait, that was NWA. ok, I'm surprised.

 

[USCREW]

Webcasts on the hub at 0815 and 0935.

 

[Charlie_Tuna]

Alot of delta execs are from US Airways before the first acquisition. I doubt it's hostile. I bet it's been in the making since the acquisition.

Watch for Delta to 'take care' of these execs, even thought the top dogs already have a shitload of money.

(People below the top (say) 30 won't be taken care of though.)

I am just reporting what CNBC said and that is USAirways went public with offer because Delta turned it down before. They also said Delta has not responded as of yet this morning. When a merger offer comes out and both parties are not standing together at a podium announcing it then it means there must be problems somewhere. Doug Parker on CNBC also stated the he thinks Delta creditors will think its a good offer. Wonder why he didn't say the same about Delta officials? Doug also said one shuttle is byebye. CNBC asks which will survive as a hub Atlanta or Charlotte? They say put your money on Atlanta

AWA employees get ready to move farther down the list or maybe even off the list

 

[USCREW]

AWA employees

WHO????

Just kidding 😀

 

[Art at ISP]

Why would they wait until Delta emerges? Would it not be more cost effective to merge before and emerge upon consummation?

Boy I wonder what L4PI will think 😉

It would be a modern miracle if this came off--but I wonder why go public now if this was rejected before?????

 

[Bird Doctor]

union vs non-union boy this will interesting. we just got the news at 4:02am AZ time.

 

[USCREW]

but I wonder why go public now if this was rejected before?????

I heard on the news that it is a hostile takeover.

 

[trvlr64]

It's already on the US website.

http://www.usairways.com/awa/content/opera...er/default.aspx

and a video too......

http://208.106.162.83/usairways/nov_15_news/

 

[Charlie_Tuna]

Why would they wait until Delta emerges? Would it not be more cost effective to merge before and emerge upon consummation?


It would be a modern miracle if this came off--but I wonder why go public now if this was rejected before?????

Because USAirways wants it to happen. That is why I called it hostile. USAirways is taking it publicly to the creditors force Delta to negotiate.

I would think they doing it during bankruptcy to get the ducks in order before Delta emerges. The timing is critical also you have the current merger to worry about.

WHO????

Just kidding 😀

Those guys that will be dovetailed in by seniority near the bottom of the lists (The AWA/USAirways merger).

 

[hula-flyguy]

What are the chances of this thing happening with DL management against it? I doubt that the BOD at DL will go for something that management does not think is in the best interest of DL.

 

[wings396]

I guess that's why Doug doesn't have any cash to cough up to the employees in the contract talks. I heard one person on CNBC say that Delta would be the surviving name of the merged carrier. I smell another way to oust the unions brewing. Same deal as it was by keeping the US Airways name, and the BK contracts. Now they will rid themselves of a few unions on the property altogether.
I hope there would be some kind of a vote, but one never knows around here. Even if there were, how many of those
DL diehards would vote in favor of a union anyway?

 

[Art at ISP]

In retrospect I think this may be a smokescreen for the real target--NW. A NW deal makes much more sense in my opinion--lower price, less overlap, easier government approval...and the Asian routes alone are worth the price of admission.

If this deal happens, more than a few hubs will go bye bye---and in my opinion, CLT would be the most vulnerable....

For some reason I don't see this one happening.