AMR sees itself as an acquirer in potential mergers and at least five airlines

[inflightboi175]

AMR sees itself as an acquirer in potential mergers and at least five airlines -- US Airways Group Inc , JetBlue Airways Corp , Alaska Air Group , Republic Airways' Frontier Airlines, and Virgin America -- will be considered.


AMR Corp will reach out to at least five airlines, including US Airways Group and JetBlue Airways Corp, under its plan to evaluate potential mergers and other strategic options, a source familiar with the situation said on Tuesday.

The bankrupt parent of American Airlines also plans to look at Alaska Air Group, Frontier Airlines - a unit of Republic Airways -- and Virgin America as potential merger partners, the source said.

American executives mentioned these five airlines as potential merger candidates at a meeting with its unsecured creditors committee on Tuesday and discussed the merits and challenges of each combination, said the source, who asked not to be identified because the matter is not public.

American Chief Executive Tom Horton said earlier on Tuesday that the carrier is going ahead with plans to evaluate potential mergers and will reach out to interested parties, but did not identify those parties.

Private equity firms, other U.S. legacy carriers or even foreign airlines may express interest in a potential deal once the third-largest U.S. airline starts the evaluation work, the source said.





http://in.reuters.com/article/2012/07/11/amr-merger-candidates-idINL2E8IAG3220120711

 

[kf4amu]

Doug Parker has said a merger will be structured not to trigger the change in control provision of their CBA with the pilots. Hard to see how American would be the acquiring party but not trigger a change of control, but what do I know.

 

[redflyer65]

The acquirer? In bankruptcy? Now that's funny. Horton should have planned ahead a little better.

 

[General Lee]

The acquirer? In bankruptcy? Now that's funny. Horton should have planned ahead a little better.

Don't they still have $6 billion? Maybe $4 billion? Is that more cash on hand than SWA? Just sayin...


Bye Bye---General Lee

 

[mach none]

Yikes...run away!

 

[redflyer65]

Don't they still have $6 billion? Maybe $4 billion? Is that more cash on hand than SWA? Just sayin...


Bye Bye---General Lee

I believe Song might be down to 500k. I hope they pull it out.

Alot of good buds over there.

Oh, AA? Let me know what the debt is Genital. They are in bankruptcy for a reason.

 

[texman]

Don't they still have $6 billion? Maybe $4 billion? Is that more cash on hand than SWA? Just sayin...


Bye Bye---General Lee

So what will be fair in a SLI Gen?

 

[fly4surf]

That's a short list you don't want to be on. Good luck out there.

 

[relief tube]

funny if it's vigin america- every virgin's pay would increase 3-4 times. try negotiating seniority with that!

 

[Freebrd]

smokescreen

 

[kf4amu]

it's a ploy to increase their purchase price for when usairways buys them. Well not really a ploy because they kinda have to do it, but still...its a smokescreen like freebrd said. Even if they get an extra million out of usairways for the bluff, it costs them nothing to pretend they are shopping the company.

 

[General Lee]

So what will be fair in a SLI Gen?

Arbitration?


Bye Bye---General Lee

 

[Scoot 11]

I believe Song might be down to 500k. I hope they pull it out.

Alot of good buds over there.

Oh, AA? Let me know what the debt is Genital. They are in bankruptcy for a reason.

Tanker Clown. Your postings under this name are as boring under the other name. Can you really afford $10 on first year SW pay after buying your job?


Sent from my iPhone using Tapatalk

 

[fam62c]

Don't they still have $6 billion? Maybe $4 billion? Is that more cash on hand than SWA? Just sayin...


Bye Bye---General Lee

That money is owed to creditors, it can't be used for an acquisition at this point. The only way AMR can do an acquisition is after bankruptcy with new cash from an IPO. If AMR competitors don't want the company coming our of Chapter 11 in a strong position to be able to buy another airline(s) there could still be an offer from a group of carrier to break up AMR and sell it in pieces. I think a merger with LCC is still the most likely scenario but we haven't seen all of the options surface yet, this is far from over. Horton can say whatever he wants but the creditors own the company now and they will decide what happens.

 

[cameltoad]

I would like anyone to explain how joining with the little group of Virgins in any way helps AA be a stronger more viable carrier out of bankruptcy, or with Frontier, or Republic for that matter,,,what a joke. For some reason that none of us understand this is a game that must be played out before they merge with the only viable choice.

 

[igneousy2]

I would like anyone to explain how joining with the little group of Virgins in any way helps AA be a stronger more viable carrier out of bankruptcy, or with Frontier, or Republic for that matter,,,what a joke. For some reason that none of us understand this is a game that must be played out before they merge with the only viable choice.

I think a breakup is a very real possibility. I think the pieces of AA might be worth more than they could get from a single buyer of the whole airline.

 

[Flyby1206]

I think a breakup is a very real possibility. I think the pieces of AA might be worth more than they could get from a single buyer of the whole airline.

That's nucking futs. AA wont be broken up and sold as pieces. IAG/TPG would step in long before that was a realistic possibility.

 

[doh]

I would like anyone to explain how joining with the little group of Virgins in any way helps AA be a stronger more viable carrier out of bankruptcy, or with Frontier, or Republic for that matter,,,what a joke. For some reason that none of us understand this is a game that must be played out before they merge with the only viable choice.

Whaddayamean little group!!??!! There's at least 72 of 'em!! That's what I heard anyway...

 

[tomgoodman]

For some reason that none of us understand this is a game that must be played out before they merge with the only viable choice.

As was discussed in another thread, they must play this out ("examine all options", "exercise due diligence", etc.) before doing what they intended to do all along. This prepares their defense against accusations by disgruntled stockholders that Management failed to perform their fiduciary duty to seek out the best deal. It's standard procedure when a company is "in play", even when the outcome is predictable.

 

[captairbusbb]

AMR as the acquirer!!!......Horton is smoking some good crack!!!....Lots of luck on that one Tommy!!!