Proposal reminiscent of Old U / PI merger

phasersonstun2

Veteran
May 1, 2003
560
4
PI hated US. The only reason they went through with this is that Icahn was trying to buy both of us. The "devil may have" lexicon was used to describe the contriversial deal.
 
When Uncle Ed asked Boss Hogg about a merger with Piedmont, Boss Hogg told him to basically take a hike.

Not to be deterred, Uncle Ed did an end run and went right to the major stockholder (Norfolk Southern) and made the same proposal.

Norfolk Southern took the bait and Boss Hogg became quickly irrelevant.

It does sound very familiar to what's going on.

Although Delta management is still technically in exclusive position to come up with a way out of Chapter 11 that will make the creditors happy, Parker just made Grinstein's task near impossible. And everybody, especially wall Street, knows it (everybody except a particular bloviator on another thread who LOVES his blinders.)
 
Except for the fact that you have two types of "shareholders" now (secured and unsecured) and it's not a forgone conclusion that the unsecured folks are going to dig on it (as many of them were already burned twice by US).
 
As I see it, not much will change for DL other than the possible location of it's headquarters. The Delta name stays along with a lot of other stuff. Jerry is retiring anyway, so they will be on the hunt for a new CEO. I can't say that DL is at the risk of losing a top notch management team, so they may as well try something new. Delta has nothing to lose, and a lot to gain in size and marketshare. ;)