Merger Acquisition Liquidation

[speedbird86]

The popular term being used is merger. But is it a merger?

 

[delldude]

hows about"creative liquidation"?
using politically correct terms(merger) so not to freak out the liquidated??

 

[BoeingBoy]

Since most "mergers" are one company purchasing another - the "merger" comes from the merging of the operations of the acquiring and acquired - this is something of a different animal than most.

One company isn't acquiring the other, but rather outside investors acquiring both (except for that portion of "new" stock going to AWA shareholders).

Initially the only corporate merger will be between AWA & Barbell (which was incorporated in Delaware on 5/12/05, BTW). Of course, Barbell has no operations to merge with AWA, so there won't be an operational merger till somewhere down the road - 2 to 3 years according to public statements - when AWA/Barbell merges with US mainline.

One can only wonder what US mainline will look like by then....

Jim

 

[delldude]

so its kind of an outside aquisition by the money men.....basically buying it and putting it back together again in a new form/image.

 

[ringmaruf]

One company isn't acquiring the other, but rather outside investors acquiring both (except for that portion of "new" stock going to AWA shareholders).

[post="280899"][/post]​

By my rough count, with the Tudor investment now, the percentages will be 11% to US creditors, 34% to HP stockholders, and 55% to new investors.

 

[BoeingBoy]

Par already holds 2.4 million shares of AWA, which will convert to roughly 1 million "new" US shares. Double that if they use the rights offering to purchase the maximum additional shares. So they could end up owning 5.9 million shares of "new" stock.

Jim

 

[RowUnderDCA]

I think it IS accurate to call it a merger. I think it is right to credit U's executive with being at least partially, if not primarily responsible for the success of financing the new entity.. I think it's beyond obvious that of the entities being merged U is worth LESS than AWA. And U mainline is worth even less. It's the market presence that is valuable and always has been with U. The merger just frames a manner in which that value might be realized by a number of measures, the most important being the liquidation of U's management and to some degree some entrenched labor interests, particulalry in PHL and formerly PIT.

This may be what is behind the PSA closure of the PHL base. Doing almost ANYTHING to break up the bad karma of PHL is likely to make investors more comfortable with the idea that the merger will diminish past interests that have been conter productive to the obvious, and painful and not necessarily fair changes that have to happen.

I still wouldn't be surprised if PHL is more radically changed in some ways in the new entity.

 

[IAM1776PHL]

The popular term being used is merger. But is it a merger?

[post="280892"][/post]​

IMO
The only sole reason that the U name remaines
is so that the U employees hang around until AW
gets on board, you see if AW name remained the U
employees would relize to soon U that is being liquidated
right before their eyes and probally leave the co
wow then the big money would have problems.

 

[jimntx]

IMO
The only sole reason that the U name remaines
is so that the U employees hang around until AW
gets on board, you see if AW name remained the U
employees would relize to soon U that is being liquidated
right before their eyes and probally leave the co
wow then the big money would have problems.

[post="280933"][/post]​

When things look blackest, you're always there with the voice of doom. Nothing like cheering everyone down for the weekend. (Just kidding, of course. Though I hope you are wrong.)

 

[gso-crew]

Parkers style is to live side by side with Southwest not to try and block them. Look at LAS and PHX. I look for Southwest to boom in PHL and US Airways to cut the operation by 30 to 40%.

 

[diogenes]

This may be what is behind the PSA closure of the PHL base. Doing almost ANYTHING to break up the bad karma of PHL is likely to make investors more comfortable with the idea that the merger will diminish past interests that have been conter productive to the obvious, and painful and not necessarily fair changes that have to happen.

I still wouldn't be surprised if PHL is more radically changed in some ways in the new entity.

[post="280925"][/post]​

Concur, RUD.

PHL is an eternal Charlie Fox; I don't think it can ever be fixed.

HP/US would be wise to reduce PHL to enough of a focus city to capture the local traffic, and leave it at that. CLT is the only eastern hub HP/US will need.

 

[WestCoastGuy]

Concur, RUD.

PHL is an eternal Charlie Fox; I don't think it can ever be fixed.

HP/US would be wise to reduce PHL to enough of a focus city to capture the local traffic, and leave it at that. CLT is the only eastern hub HP/US will need.

[post="280951"][/post]​

Thats exactly right. PHL is a mess...always has, always will be. Drop it like a bad habit and move on. It drags down the entire system.

 

[tadjr]

Thats exactly right. PHL is a mess...always has, always will be. Drop it like a bad habit and move on. It drags down the entire system.

[post="280958"][/post]​

Amen to that. Keep it for the local traffic and International/Caribbean conx and lets go point to point on the rest of the system where the need warrants. We arent helping us or our customers by trying to squeeze everything thru PHL that we are. In fact, I say we're doing just the opposite by chasing them away from US. A lot dont understand or care that its the "Philly Phactor" at work most days, they just know that they were late and didnt get their bags on US. I believe that there are enough markets where point to point is warranted without getting PHL involved. US needs to just go back into these markets. You're going to always have a little domestic conx traffic in PHL if you're feeding the Carib/Intl flights from all points, but the ELM-ORF, RDU-BOS, etc flights would be better connected on a regular basis via CLT or DC even.

 

[FLYAWAY]

I agree...only in Philly do they stop the pushbacks soo soon ...electronic ankle bracelet started tingling when they got too far from the terminal. On walk arounds, pilots are back to carrying the big flashlights.....for protection. As a matter of fact on a trip last week, as the F/O was headed out side, his last words were "cover me".... 😀

Good Old PHL, The only third world banana republic airport that is located in the USA!

 

[speedbird86]

Good Old PHL, The only third world banana republic airport that is located in the USA!

An amazing place! I say let SWA have more gates, let's see if it is as I suspect the airport and NOT the airline. Most would concur that SWA is the better managed airline. So let's see what they can do with it moving 3 or 4 times more traffic then they do now.

Could PHL be SWA's Waterloo?

[post="280995"][/post]​

I suspect SWA would deal with problems that they can control in a responsible and professional manner. Unlike US, who seems to be scared to deal with anything in PHL. Bust up the philosophical idea that "we work for the union, not the company" mentality. If it takes contracting out the operation then so be it.
I still say and always will that one of many blunders US management has made, maybe the biggest blunder was to dismantle PIT and build up PHL. Surely they have always been aware of the PHL mentality. I've known great, responsible agents who have had to transfer to PHL, even for a short time, come out with a bad attitude.
Sorry, didn't mean to jump on the "bash PHL" bandwagon. Anyway, I'm sure HP can deal with it. :blink: