US Airways seeks to double share authorization

[Poug Darker]

An LCC-UAUA merger invokes the federal law that requires Allegheny-Mohawk LPPs for merging seniority. Crafty ole' ALPO with their 'competent' (choke) attorneys couldn't wisely find their way out of a paper bag, much less contribute anything remotely positive for the union membership. ALPO national's FIRST priority has always been self-preservation at all costs. Altering the TA? ha ha ha ha ha.
I agree though that the whole thing will have to be worked out in advance of the consummation of the merger. UAUA's ALPO MEC knows this, too, as they comissioned a special task force to analyze the US-AW merger and how it got screwed up. The recommendations that came back to their MEC included negotiating a settlement and avoiding arbitration at all costs.

 

[aquagreen73s]

UAUA's ALPO MEC knows this, too, as they comissioned a special task force to analyze the US-AW merger and how it got screwed up. The recommendations that came back to their MEC included negotiating a settlement and avoiding arbitration at all costs.

That's an interesting twist on history, but all the UA MEC did is have their merger committee look at this arbitraiton and make some observations about how to approach an arbitration and how not to. The complete ineptitude of the AAA side was not lost in the UA analysis and their recommendations underscore the obvious: when an arbitrator tells the parties to come off of their positions, then you'd better prioritize and ask for what is most important. Absent that, the arbitrator will simply split the baby and in this case, there went your attrition.

All or nothing is a reckless way to negotiate; that's what the UA MC concluded.

 

[Poug Darker]

aquagreen "Paul Rice and Doug can have this whole thing set up to where the arbitration is a foregone conclusion. That to me is the real possibility."
"That's an interesting twist on history, but all the UA MEC did is have their merger committee look at this arbitraiton and make some observations about how to approach an arbitration and how not to...All or nothing is a reckless way to negotiate; that's what the UA MC concluded."

I rest my case. Arbitration will never occur because UA guys have decided no deal will pass until everyone signs off on it, ergo - negotiated settlement.

 

[Edward]

ff: This is NOT the pilot labor thread. Lets get back to the topic.

 

[USA320Pilot]

US Airways Seeks Increase In Stock

The board of directors also asked that the request not be misinterpreted. “Although an increase in the authorized shares of US Airways Group common stock could, under certain circumstances, be construed as having an anti-takeover effect, the proposed increase in shares authorized is not in response to any effort by any person or group to accumulate US Airways Group common stock or to obtain control of us by any means,â€￾ it noted. "he proposal is not part of any plan by our board of directors to recommend or implement a series of anti-takeover measures,â€￾ the airline added.

Click here to read the story.

Regards,

USA320Pilot

 

[hp_fa]

I am not an economic wiz kid, but how can this reasonably be considered good news? It seems to me that issuing new shares just further dilutes the value of the shares of current investors and therefore reduces the value of their invested funds.

Feel free to educate me...

 

[Freighterguynow]

I am not an economic wiz kid, but how can this reasonably be considered good news? It seems to me that issuing new shares just further dilutes the value of the shares of current investors and therefore reduces the value of their invested funds.

Feel free to educate me...

Some people are obsessed by a merger with United. Nothing more.

 

[fudgerunyard]

US Airways Seeks Increase In Stock

The board of directors also asked that the request not be misinterpreted. “Although an increase in the authorized shares of US Airways Group common stock could, under certain circumstances, be construed as having an anti-takeover effect, the proposed increase in shares authorized is not in response to any effort by any person or group to accumulate US Airways Group common stock or to obtain control of us by any means,â€￾ it noted. "he proposal is not part of any plan by our board of directors to recommend or implement a series of anti-takeover measures,â€￾ the airline added.

Click here to read the story.

Regards,

USA320Pilot

I thought this quote from the article was perculiar...

“[T]he proposal is not part of any plan by our board of directors to recommend or implement a series of anti-takeover measures,â€￾ the airline added.

Almost sounds like LCC is potentially being targeted for a hostile takeover attempt....hmmm....when was the last hostile takeover attempt and by whom???

http://money.cnn.com/2007/01/31/news/compa...sion=2007013115

 

[JFK Fleet Service]

Almost sounds like LCC is potentially being targeted for a hostile takeover attempt....hmmm....when was the last hostile takeover attempt and by whom???

With the credit markets just now starting to show the first signs of a thaw I can't see anyone getting backing for a traditional merge,much less a hostile take over.

 

[ClueByFour]

According to a friend of mine who has served on many Boards and has been involved in M&A activity at the senior officer and board level the two biggest reasons companies have lare share offerings are general corporate purposes and acquistions. I believe dependent upon industry macroeconomic conditions stock could be sold to be used for general corporate purposes, PDP deposits, and a strategic acquisition where stock is used in lieu of cash to acquire another company.

According to a friend of mine (a CPA who can read the balance sheet), you can translate this to "general corporate purposes" more specifically "the avoidance of furniture burning."

And, "In the longer term after United and Continental complete their (alliance) antitrust review there will be “more opportunity (for US Airways) to work with Continentalâ€￾ and US Airways will become more “deeply embedded with United and it commits them to the domestic portion of the alliance,â€￾ US Airways Presdient Scott Kirby said in the April 28 Crew News employee meeting webcast. "It means it will have more opportunity for usâ€￾ and “don’t believe everything you read (in the media),â€￾ Kirby noted.

Kirby can say whatever he wants: Continental dropped it's HP partnership like 3rd period french when Parker decided to make it the "party cup" airline.

 

[700UW]

Guess someone was wrong again, gotta love it!

United asks Boeing, Airbus to bid for 150 planes

 

[back2CLT]

Damn....you beat me to it. Yeah, I'd take this as a pretty clear signal that United isn't interested in USAirways and it's commitments, unless they somehow think that US is going into bankrupcy and can void these existing contracts with Airbus.

What sucks about this is that United will probably get some killer deals on the A-350 or 787, possibly better than what US got for being the inaugural airline order for the 350.

Perhaps US will try to use this to negotiate down the price it is paying for the 332 coming off the line now.

 

[Edward]

This is a warning to all this needs to stay on topic. I've just removed one post that belongs in another thread .(I bet you can guess) Next one gets time off.

 

[USA320Pilot]

US Airlines Fall As JPMorgan Downgrades UAL On Cash Strength

JPMorgan lowered its rating on UAL to underweight from neutral, saying United's proposal request for new jets actually should be regarded as a ploy to raise capital that highlights its weak cash position

Click here to read the article.

Whose wrong? Gotta love it!

Regards,

USA320Pilot

 

[fudgerunyard]

US Airlines Fall As JPMorgan Downgrades UAL On Cash Strength

JPMorgan lowered its rating on UAL to underweight from neutral, saying United's proposal request for new jets actually should be regarded as a ploy to raise capital that highlights its weak cash position

Click here to read the article.

Whose wrong? Gotta love it!

Regards,

USA320Pilot

Actually, LCC, not UAL is the one looking to double its outstanding shares to raise cash. And as per this article, it is in fact LCC that's in the most trouble with regards to cash-on-hand.


http://news.airwise.com/story/view/1241473423.html