Saw this on the WSJ an hour ago
http://online.wsj.com/article/SB1208...221...s_us_whats_news
Quote:
People familiar with the matter said there is no merger deal already drawn up between United and Continental. But the two were expected to resume talks, said one person, following up on informal discussions in the recent months about governance, with the idea that Mr. Kellner would be CEO of the combined entity if they got together.
Other people with knowledge of the situation suggested that the two could reach an agreement on a deal in the next few weeks. That would put their proposed transaction on the same timeline for regulatory scrutiny as the Delta-Northwest deal, with an eye toward receiving clearance from the Justice Department before the White House changes hands in January. The thinking is that the government wouldn't approve one deal and block a second.
To broaden its options, though, United also is looking at a more remote possibility of buying US Airways, said one person familiar with the matter. It wouldn't be the first time. United tried to acquire US Airways in 2000 but the plan was dropped in the face of regulatory resistance.
Another person familiar with the matter said United and US Airways have been in talks about a potential merger for over a month. The companies have done "a lot of work together" on what the synergies could be and are floating around a number that could be at least as attractive as synergies in a United-Continental linkup, this person said. Those synergies would be driven by the strength of US Airways' route network in the East, this person said, adding that the synergies would also be "meaningfully higher" than the $1 billion-plus in annual revenue and cost savings number that Northwest and Delta have said they expect to generate in a merger.
Not sure what would happen in the northeast, but with DEN, SFO, LAX, we would be able to dissolve LAS and reduce PHX. Either DCA or PHL may get screwed.
http://online.wsj.com/article/SB1208...221...s_us_whats_news
Quote:
People familiar with the matter said there is no merger deal already drawn up between United and Continental. But the two were expected to resume talks, said one person, following up on informal discussions in the recent months about governance, with the idea that Mr. Kellner would be CEO of the combined entity if they got together.
Other people with knowledge of the situation suggested that the two could reach an agreement on a deal in the next few weeks. That would put their proposed transaction on the same timeline for regulatory scrutiny as the Delta-Northwest deal, with an eye toward receiving clearance from the Justice Department before the White House changes hands in January. The thinking is that the government wouldn't approve one deal and block a second.
To broaden its options, though, United also is looking at a more remote possibility of buying US Airways, said one person familiar with the matter. It wouldn't be the first time. United tried to acquire US Airways in 2000 but the plan was dropped in the face of regulatory resistance.
Another person familiar with the matter said United and US Airways have been in talks about a potential merger for over a month. The companies have done "a lot of work together" on what the synergies could be and are floating around a number that could be at least as attractive as synergies in a United-Continental linkup, this person said. Those synergies would be driven by the strength of US Airways' route network in the East, this person said, adding that the synergies would also be "meaningfully higher" than the $1 billion-plus in annual revenue and cost savings number that Northwest and Delta have said they expect to generate in a merger.
Not sure what would happen in the northeast, but with DEN, SFO, LAX, we would be able to dissolve LAS and reduce PHX. Either DCA or PHL may get screwed.
