USAirways and TPG may make Joint bid for AA

[etops1]

http://www.reuters.com/article/2012/05/31/us-amr-usair-jointbid-idUSBRE84U04Q20120531

 

[chris perry]

They have more than enough cash,plus the management to back it up.TPG/USAIR would be Horton's nightmare for a plan to emerg stand alone.TPG put up to 38 billion to close the TXU deal here in Texas

.http://www.bizjourna...08/daily30.html

 

[Airlinesforever]

I was wondering when TPG would be getting involved. TPG also was involved with Continental Airlines when Gordon Bethune was CEO. Is it possible that TPG saw bad management practices with AA management, so would not step up until a new management would be involved?

 

[FWAAA]

I was wondering when TPG would be getting involved. TPG also was involved with Continental Airlines when Gordon Bethune was CEO. Is it possible that TPG saw bad management practices with AA management, so would not step up until a new management would be involved?

TPG has enough clout to choose its management if it gets involved. The article linked by the OP raises the possibility that TPG teams up with US but also raises the possibility that TPG teams up with AA management.

Unlike AA's employees, TPG will make its decisions based solely on the numbers and its objective view of management strength and will leave the emotion about AA management out of the equation. That might mean that Parker is handed the reigns or might mean that Horton continues to lead or it might mean that TPG would bring in new/outside managment to run US-AA or to run AA as a standalone.

 

[etops1]

That's not what the article sais FWAA . That's what you say ..

 

[700UW]

Parker has worked with Bonderman before, as TPG helped HP emerge from bankruptcy, if I remember correctly.

 

[BonTemps]

Would more layoffs/leaner personnel be a TPG priority? As they are just an investment group, not a brick and mortar "business" so to speak. I thought the fear of investment groups was that they could break it up and sell it off. That would not be good for either AA or US I don't think. A bigger airline means more growth for all involved. I know some people (above and below the wing) were looking forward to being able to transfer in (when vacancies occur) to places like RDU, PBI, RIC, even back to SJU.

 

[FWAAA]

That's not what the article sais FWAA . That's what you say ..

No, here's what the article said, which is entirely consistent with my post:

The sources, however, cautioned that the discussions between US Airways and TPG are not exclusive and partnering with each other is one of many options each party is considering.

US Airways has received expressions of interest from several parties in financing a potential merger for AMR, while the private equity firm is keeping its options open and may also look at becoming AMR's financial partner under the airline's standalone restructuring plan, the sources said.

http://www.reuters.c...E84U04Q20120531
What do you think the bolded portion means? I read it to say that TPG might team up with Horton & Co.

I accurately summarized the article's points. Perhaps you read that bolded portion differently. TPG has worked with US and with AA in the past and in the six months since AA filed for Ch 11 protection, there have been rumours that TPG might help finance AA's exit from Ch 11. And this article again mentions that possibility, along with the oft-rumoured possibility that TPG might team up with Parker.

Unless you're taking issue with the other part of my post, which merely states the obvious: TPG isn't all wrapped up in "AA management is the devil" and "AA management drove AA into the ground" nonsense emotions the way many AA employees are.

 

[aapitbull]

I was wondering when TPG would be getting involved. TPG also was involved with Continental Airlines when Gordon Bethune was CEO. Is it possible that TPG saw bad management practices with AA management, so would not step up until a new management would be involved?

Actually TPG has alot of history of helping airlines in BK I do not know how the employees faired on each occasion but as noted they helped turn around Continental to a very good airline.

 

[wings396]

I think that they were going to get involved with the old US
until that baffoon from Alabama did.....

 

[700UW]

Yes they were, it was Bonderman who announced TPG provided the first DIP financing and brought in Siegel, RSA and Bronner stepped up in chapter 11 and offered more and took over as the DIP and provided exit financing to US.

 

[Buck]

If a TPG - USAir bid arises during bankruptcy, can that bidder become a DIP ? What happens to the debtor's $6 billion cash on hand?

 

[eolesen]

Parker has worked with Bonderman before, as TPG helped HP emerge from bankruptcy, if I remember correctly.

Parker showed up as CFO at HP about a year *after* they emerged from bankruptcy.

 

[signals]

They have more than enough cash,plus the management to back it up.TPG/USAIR would be Horton's nightmare for a plan to emerg stand alone.TPG put up to 38 billion to close the TXU deal here in Texas

.http://www.bizjourna...08/daily30.html

Key quote from original article:
US Airways has received expressions of interest from several parties in financing a potential merger for AMR, while the private equity firm is keeping its options open and may also look at becoming AMR's financial partner under the airline's standalone restructuring plan, the sources said

So suck it US!

 

[signals]

No, here's what the article said, which is entirely consistent with my post:



http://www.reuters.c...E84U04Q20120531
What do you think the bolded portion means? I read it to say that TPG might team up with Horton & Co.

I accurately summarized the article's points. Perhaps you read that bolded portion differently. TPG has worked with US and with AA in the past and in the six months since AA filed for Ch 11 protection, there have been rumours that TPG might help finance AA's exit from Ch 11. And this article again mentions that possibility, along with the oft-rumoured possibility that TPG might team up with Parker.

Unless you're taking issue with the other part of my post, which merely states the obvious: TPG isn't all wrapped up in "AA management is the devil" and "AA management drove AA into the ground" nonsense emotions the way many AA employees are.

You actually get it, but the blind refuse to see it.