United, Continental resume merger talks

[UALbagboy]

IMO there will be a compromise by the end of the week.

Jetz,

God do I pray you are right. If they pull away we will go right after US Air again and have a merger announced by the end of May.

 

[xUT]

JMHO, I think retirees will get screwed further regardless of what dance partner we get.
B) xUT

 

[gatemech]

Don't get me started on outsourced mx. I can't even stand the work done by Timco in SC, let alone foreign mx. United planes should be serviced by United mechanics. Period.

It's all about scope. I think this administration is more receptive to pressuring companies to keep jobs in this country at least.

767jetz,

If you believe the administration cares where the A/C are maintained then you need to look again. The ailines will do
what they want. They will tell the FAA how it's going to be. And with Tilton at the top of the ATA the MX side will continue
to be outsourced to 3rd world companies. Look at the USAF tanker contract. How can they even consider it being built
by a foreign company? That is for US workers to build!!!! It's all about corporate america. Sorry off topic a little.

BYW how goes it?

gatemech

 

[wings396]

I think CAL knows if they back away from UAL then LCC will have a merger deal with UAL before the end of May. If you think LCC is done talking to UAL then you are only kidding yourself.

Sorry to say it, but I still think that CO jumped into this due to the fear of being left out. If US wasn't in talks with UA, I'm just about certain that CO would be sitting at home all alone. They backed out once, so never rule out the possibility that they may do the same again. All of this merger stuff is far from over, and there may be a few shockers by the time it's all over. Many point out the issue of overlap with UA/US between PHL & IAD, but EWR & IAD fall under pretty much the same situation.

 

[adiruwho]

767jetz,

If you believe the administration cares where the A/C are maintained then you need to look again. The ailines will do
what they want. They will tell the FAA how it's going to be. And with Tilton at the top of the ATA the MX side will continue
to be outsourced to 3rd world companies. Look at the USAF tanker contract. How can they even consider it being built
by a foreign company? That is for US workers to build!!!! It's all about corporate america. Sorry off topic a little.

BYW how goes it?

gatemech

Amen to that.
The beauty of it is that even though the feds grant those outfits repair station certificates, there is practically zero oversight! We won't mention background checks, drug testing, or licensing, among other things.

 

[mayor]

I think it would be VERY unusual for 2 companies to get this close and then let it fall apart over valuation. How far apart can they be?

It's my understanding that since the talks resumed, CO's stock price has risen more slowly than UA's, putting UA's stock price higher since news leaked out about the US merger talks. It's understandable that CO would want to use the valuation of UA before it was effected by speculation of a merger that should not have been released in the first place. On the other hand it is understandable that UAL would want to have the highest valuation possible before a deal.

If you look at the stock prices today, CO is up and UAL is down. If they keep talking for a few more days and investors think the deal is stalled, before you know it the stock values will equalize again.

IMO there will be a compromise by the end of the week.

DL & CO got this close in the 60s and it fell apart because C.E. Woolman (DL) and Bob Six (CO) couldn't get together on who the surviving carrier would be and which name would remain.

 

[767jetz]

DL & CO got this close in the 60s and it fell apart because C.E. Woolman (DL) and Bob Six (CO) couldn't get together on who the surviving carrier would be and which name would remain.

Yes. But times are much different now, and so is this industry. Consolidation is inevitable. Everyone knows that now is finally the time to choose their partners or forever hold their peace.

 

[UALbagboy]

Look at this, great news.

http://www.chicagobreakingbusiness.com/2010/04/united-continential-on-track-for-a-deal-this-week.html

Looks like it might be announced by Friday.

We posted the best results out of all the majors. We also now have 4.5 billion in savings as of Apr 26th.

 

[767jetz]

Look at this, great news.

http://www.chicagobreakingbusiness.com/2010/04/united-continential-on-track-for-a-deal-this-week.html

Looks like it might be announced by Friday.

We posted the best results out of all the majors. We also now have 4.5 billion in savings as of Apr 26th.

Excellent news! This sounds more in line with reality. If price is the only remaining issue then we are in the home stretch. Anyone who has haggled over any real estate deal recently knows the back and forth that occurs in the final hours to obtain the best terms. It is not as dire as some news organizations like to hypothesize. Certainly not an "impasse."

 

[shaka]

Excellent news! This sounds more in line with reality. If price is the only remaining issue then we are in the home stretch. Anyone who has haggled over any real estate deal recently knows the back and forth that occurs in the final hours to obtain the best terms. It is not as dire as some news organizations like to hypothesize. Certainly not an "impasse."

So now that we are close.... what will the new UAL/CAL look like in terms of hub flying thanks?

 

[UALbagboy]

I am slowly starting to think they will come to a deal.

April 7 ratio was 1.08
The cried about the ratio at 0.96
Today the ratio ended at 1.05

Cal gained 75% of their request back just from the markets.

They should comprimise on the other .03.

Who knows, they might be keeping quite on merger news so that the stock market fixes the problem itself.

That way Tilton does not have to tell the share holders that he cut a bad deal.

 

[767jetz]

I am slowly starting to think they will come to a deal.

April 7 ratio was 1.08
The cried about the ratio at 0.96
Today the ratio ended at 1.05

Cal gained 75% of their request back just from the markets.

They should comprimise on the other .03.

Who knows, they might be keeping quite on merger news so that the stock market fixes the problem itself.

That way Tilton does not have to tell the share holders that he cut a bad deal.

My thoughts exactly.

 

[Borescope]

Why would CO want to hook up with a boat anchor like UA. They (CO) are getting better than 80 % of the synergies and non of the other hassles. On the flip side of that, if UAL is doing so much better, as noted in their first quarter report, why then the urgency to merge? CO took the bait (USAir), but they may have just nibbled on it.

 

[UALbagboy]

http://www.chicagotribune.com/business/ct-biz-0428-united--20100427,0,6211931.story

Well looks like the share holders might say "hell no".

 

[767jetz]

UAL and CAL Edge Closer to Uniting

Looks like things are unfolding as expected.