http://www.ft.com/cms/s/2/d5727ad0-cf6e-11...00779fd2ac.html
American Airlines, the world’s largest airline by total passengers transported, could be a threat to a Delta deal, particularly if it tied-up with Northwest, the banker said. Having taken a hard look at Northwest “years agoâ€, the banker speculated that American could attempt to bust the deal by making a competing offer if and when the deal is announced. Further, a second industry banker said Northwest did not agree to the merger with American in 2000 as the offer did not reflect the full market premium to Northwest’s share price at that time.
Moreover, the first banker noted that American has more practical experience with mergers than any other airline, which could make the top carrier “more courageous†under the right circumstances.
American is likely thinking ahead on the probable tie-ups, the banker suggested. If United merges with Delta or Continental, American will be faced with a “very, very serious problem;†namely that its hegemony with the business traveler will be threatened, the banker said. He added that a United and Continental tie up would put American in hot water, not just because the aggregate market share of the combined entity would be bigger, but because the new entity would be an enterprise that would practically have a hub in the major population centers around the perimeter of the US. This, he said, would be a very effective kind of competitor for American.
