Delta (Anderson) denies any merger talks with United

General Lee

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Delta denies merger talks with UAL

Wed Nov 14, 2007 NEW YORK, Nov 14 (Reuters) - Delta Air Lines Inc (DAL.N: Quote, Profile, Research) said on Wednesday that there were no ongoing talks to merge with United Airlines parent UAL Corp (UAUA.O: Quote, Profile, Research).
"There have been no talks with United regarding any type of consolidation transaction and there are no such ongoing discussions," Chief Executive Richard Anderson said in a statement.
Earlier on Wednesday, the Associated Press had reported that the United and Delta were discussing a possible deal. (Reporting by Chris Reiter; Editing by Leslie Gevirtz)


Bye Bye--General Lee
 

Old School 737

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Delta denies merger talks with UAL

Wed Nov 14, 2007 NEW YORK, Nov 14 (Reuters) - Delta Air Lines Inc (DAL.N: Quote, Profile, Research) said on Wednesday that there were no ongoing talks to merge with United Airlines parent UAL Corp (UAUA.O: Quote, Profile, Research).
"There have been no talks with United regarding any type of consolidation transaction and there are no such ongoing discussions," Chief Executive Richard Anderson said in a statement.
Earlier on Wednesday, the Associated Press had reported that the United and Delta were discussing a possible deal. (Reporting by Chris Reiter; Editing by Leslie Gevirtz)


Bye Bye--General Lee
Don't they all say that just before they really announce something?!!
 

Stifler's Mom

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That's because the talks "officially" start November 15th. Now everybody's ass is covered technically speaking.
 

COpilot

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Holly $hit ! That means they must be well along in talks.

I'm not saying this to be funny, I truly beleive that to be the case when they say that.
 

filejw

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Or you could believe this...


AP
Delta, United Discuss Combining
Wednesday November 14, 3:49 pm ET
By Harry R. Weber, AP Business Writer Official Says United, Delta Have Discussed Combining the Nation's No. 2 and No. 3 Carriers
ATLANTA (AP) -- UAL Corp.'s United Airlines and Delta Air Lines Inc. have been discussing a combination between the nation's second- and third-largest carriers that would keep the United name and the corporate headquarters in Chicago, The Associated Press has learned.
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if(window.yzq_d==null)window.yzq_d=new Object();window.yzq_d['S8JgFELaX.c-']='&U=13b1kd26q%2fN%3dS8JgFELaX.c-%2fC%3d607306.11092922.11894151.1435155%2fD%3dLREC%2fB%3d4863499';Shares of both airlines surged on the news.
There is a sense of urgency in the talks, which have been going on for some time and continued as recently as a week or so ago, an official with knowledge of the talks said Wednesday. The official spoke on condition of anonymity because the person was not authorized to speak publicly.
"They want to get something done before a new administration gets in and so they get the clock ticking on" federal regulatory approval, the official said.
The exact financial details of the transaction being discussed are not clear. But the talks involve United being the name of the combined airlines, the headquarters staying in Chicago and Delta's Atlanta hub being an operational center for the two carriers, the official said. One possible scenario involves Delta CEO Richard Anderson being the chief of the combined airline, the official said.
Delta also has had talks with other airlines, the official said, without specifying which airline or the status of any such talks.
A spokesman for Chicago-based United did not immediately return a call Wednesday seeking comment. Delta spokeswoman Betsy Talton declined to comment.
Shares of Delta rose $1.92, or 10.2 percent, to $20.67 in afternoon trading. UAL shares gained $4.20, or 9.7 percent, to $47.70.
Delta said in a statement Wednesday that its board has established a special committee to work with management to review and analyze strategic options for the airline. Top executives have said recently they are trying to determine whether consolidation makes sense for Delta.
When Anderson was named in August as Delta CEO to replace Gerald Grinstein, there was immediate speculation in the investment community that Delta and Northwest might eventually merge. Anderson is a former CEO of Northwest Airlines Corp.
Anderson immediately tried to dispel such speculation, telling Delta employees he wasn't coming to Delta to facilitate a deal with Eagan, Minn.-based Northwest.
Delta's statement Wednesday was responding to pressure by a hedge fund that owns 7 million Delta shares to consider combining with UAL.
Pardus Capital Management LP said in a letter to Delta's top management on Tuesday that it is "imperative" that the company undertake a merger transaction with another airline in view of soaring fuel prices and what it described as the increased risks of going it alone.
"Consolidation is needed to de-risk the industry and time is of the essence as now is the right regulatory environment," said Karim Samii, president of Pardus, and Shane Larson, a principal.
The hedge fund executives said they had determined since making a similar recommendation in a Sept. 7 letter that "the most attractive and practical combination would be a Delta and United Airlines combination."
It cited figures from a consulting firm estimating that the benefits of such a pairing would be about $585 million and said a combined Delta-United would boast a broader network than any other combination.
Pardus also owned 5.6 million shares in Chicago-based UAL as of Sept. 30.
Pardus executives said a Delta combination with Northwest would produce even bigger benefits of about $1.5 billion, primarily from combining the smallest hubs -- Detroit/Cincinnati and Memphis/Atlanta.
"However, Northwest may not enable Delta to complete the breadth of network that business travelers require, resulting in the need for a potential follow-on transaction at a later date in order to achieve the same breadth of network that UAL would provide out of the box."
Pardus, citing information provided by the air transport consultancy Simat, Helliesen & Eichner Inc., said a third potential combination, with Continental Airlines, would produce no synergies and would raise other challenges.
Robert Mann, an airline consultant in Port Washington, N.Y., said United's broad Pacific network and Delta's huge Atlantic presence would complement each other. However, he said, combining fleet information systems and labor could pose challenges. The biggest problem would be that neither carrier has any recent track record of integration, he said.
"I would see this as a very risky move from the standpoint of the actual implementation," Mann said.
Associated Press Business Writer Dave Carpenter in Chicago contributed to this report.




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TAZ MAN

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Deny, Deny, Deny until it becomes true. I have seen this before.

This is the first blink. Consolidation has began starting today.

Good luck to us all.
 

BIGGOAT

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Is it me or does anyone else think the General drinks the company kool-aid with every meal.


Goat
 

Pocono Pilot

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So, DAL-UAL, NWA-USAir, AA-?, CAL-?

Where will the cards fall. Probably not pretty though.

I am glad that I am sitting ths one out. LOL
 

Howard Hughes

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Date:
November 14, 2007

To:
Delta Colleagues Worldwide

From:
Richard Anderson and Ed Bastian


Subject:
CONTINUING TO REVIEW OUR STRATEGIC OPTIONS

Today, Pardus Capital Management LP (an investment group holding Delta common stock) publicly
disclosed a letter they sent to us recommending Delta lead the industry in consolidation. Delta has issued the
attached press release in response to the letter. Media coverage on the issue has already begun and we want
you to be able to put the coverage in context.

First, there are currently no discussions going on with any carrier. Contrary to some media reports this
afternoon, we are not in discussions with United Airlines. But, as we’ve said all along, we will review all
strategic options. It may be that the right consolidation transaction could generate significant value for our
shareholders and employees. It is our responsibility to maintain our leadership position in the airline
industry. With oil at over $90 a barrel, this analysis takes on a heightened importance as we factor those
prices into our long-term planning.

We have also shared that we believe Delta – with the best workforce in the industry, a strong financial
position and brand – is uniquely situated to control its own destiny. In the event that we determine
consolidation is appropriate for Delta’s employees and shareholders, let’s be clear: We won’t enter into any
transaction with another airline unless we have seniority protection for Delta people. Furthermore, if there is
to be industry consolidation, Delta is in a position to participate as an acquirer. In short, we are not for sale.
While Pardus’ recommendation to Delta’s management has again put the issue front and center, our Board of
Directors had already established a special committee to work along side management to review and analyze
strategic options, including potential consolidation transactions. We’ve also retained financial and legal
advisors to assist in this review and in the development of recommendations.

In Pardus’ letter they suggest that Delta’s future, absent consolidation, is at risk. We find this statement to be
inaccurate and ill-founded. We are earning back credibility in the marketplace and market support will come
from consistent, strong financial performance. Currently, we have the best balance sheet of any network
carrier in the industry and our goal is to ensure that Delta remains strong and in control of its own destiny so
that we never again face bankruptcy.

We anticipate that you’ll see continued external coverage and speculation on this issue as the world takes
note that we’ve emerged as a leader in the industry. You can count on us to share as much as we can, when
we can. And as always, check DNN, Delta Daily and the weekly “Right from Richard” phone message to
stay up to date on this and other issues.

Thank you for taking care of our customers and staying focused on delivering great operational
performance.



 
Last edited:

Tanker Clown

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You know how to tell if your airline's CEO is lying to you?

His lips are moving.


Looks like the General will soon be leaving Song for Ted.
 

Howard Hughes

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November 14, 2007

Atlanta – Captain Lee Moak, master chairman of the Delta Air Lines pilots union, represented by the Air Line Pilots Association, Int’l (ALPA), responds to comments by Pardus Capital Management LP regarding Delta's role in consolidation by issuing the following statement:

"Today’s Wall Street Journal article discusses a letter from hedge fund Pardus Capital Management LP to Delta's senior executives encouraging a merger between Delta Air Lines and United Airlines.

"The Delta pilots' union is aware of the recent overtures made by Pardus and other hedge fund managers who see value in the 'financial transaction' aspect of a consolidating event such as a merger, often without regard for the long-term consequences to the corporations, the employees, the traveling public or the communities we serve.

"Many analysts have suggested that airline industry consolidation is inevitable. The Delta pilots are not opposed to a rational and sensible consolidation scenario. The 'right' merger opportunity could draw our support and result in a successful merger. However, we are not interested in a transaction just for transaction’s sake.

"It is crucial that all parties involved understand this very important point, that the Delta pilots will be critical participants from the beginning in any consolidation discussion and potential resultant event, not an afterthought to be considered at a later date. Any consolidating event which involves the Delta pilots will not happen without our active participation and consent."
 

IXLR8

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As if two threads on this subject werent enough.....here is the third.
 

General Lee

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Or you could believe this...


AP
Delta, United Discuss Combining
Wednesday November 14, 3:49 pm ET
By Harry R. Weber, AP Business Writer Official Says United, Delta Have Discussed Combining the Nation's No. 2 and No. 3 Carriers
ATLANTA (AP) -- UAL Corp.'s United Airlines and Delta Air Lines Inc. have been discussing a combination between the nation's second- and third-largest carriers that would keep the United name and the corporate headquarters in Chicago, The Associated Press has learned.
[SIZE=-2]ADVERTISEMENT[/SIZE]
if(window.yzq_d==null)window.yzq_d=new Object();window.yzq_d['S8JgFELaX.c-']='&U=13b1kd26q%2fN%3dS8JgFELaX.c-%2fC%3d607306.11092922.11894151.1435155%2fD%3dLREC%2fB%3d4863499';Shares of both airlines surged on the news.
There is a sense of urgency in the talks, which have been going on for some time and continued as recently as a week or so ago, an official with knowledge of the talks said Wednesday. The official spoke on condition of anonymity because the person was not authorized to speak publicly.
"They want to get something done before a new administration gets in and so they get the clock ticking on" federal regulatory approval, the official said.
The exact financial details of the transaction being discussed are not clear. But the talks involve United being the name of the combined airlines, the headquarters staying in Chicago and Delta's Atlanta hub being an operational center for the two carriers, the official said. One possible scenario involves Delta CEO Richard Anderson being the chief of the combined airline, the official said.
Delta also has had talks with other airlines, the official said, without specifying which airline or the status of any such talks.
A spokesman for Chicago-based United did not immediately return a call Wednesday seeking comment. Delta spokeswoman Betsy Talton declined to comment.
Shares of Delta rose $1.92, or 10.2 percent, to $20.67 in afternoon trading. UAL shares gained $4.20, or 9.7 percent, to $47.70.
Delta said in a statement Wednesday that its board has established a special committee to work with management to review and analyze strategic options for the airline. Top executives have said recently they are trying to determine whether consolidation makes sense for Delta.
When Anderson was named in August as Delta CEO to replace Gerald Grinstein, there was immediate speculation in the investment community that Delta and Northwest might eventually merge. Anderson is a former CEO of Northwest Airlines Corp.
Anderson immediately tried to dispel such speculation, telling Delta employees he wasn't coming to Delta to facilitate a deal with Eagan, Minn.-based Northwest.
Delta's statement Wednesday was responding to pressure by a hedge fund that owns 7 million Delta shares to consider combining with UAL.
Pardus Capital Management LP said in a letter to Delta's top management on Tuesday that it is "imperative" that the company undertake a merger transaction with another airline in view of soaring fuel prices and what it described as the increased risks of going it alone.
"Consolidation is needed to de-risk the industry and time is of the essence as now is the right regulatory environment," said Karim Samii, president of Pardus, and Shane Larson, a principal.
The hedge fund executives said they had determined since making a similar recommendation in a Sept. 7 letter that "the most attractive and practical combination would be a Delta and United Airlines combination."
It cited figures from a consulting firm estimating that the benefits of such a pairing would be about $585 million and said a combined Delta-United would boast a broader network than any other combination.
Pardus also owned 5.6 million shares in Chicago-based UAL as of Sept. 30.
Pardus executives said a Delta combination with Northwest would produce even bigger benefits of about $1.5 billion, primarily from combining the smallest hubs -- Detroit/Cincinnati and Memphis/Atlanta.
"However, Northwest may not enable Delta to complete the breadth of network that business travelers require, resulting in the need for a potential follow-on transaction at a later date in order to achieve the same breadth of network that UAL would provide out of the box."
Pardus, citing information provided by the air transport consultancy Simat, Helliesen & Eichner Inc., said a third potential combination, with Continental Airlines, would produce no synergies and would raise other challenges.
Robert Mann, an airline consultant in Port Washington, N.Y., said United's broad Pacific network and Delta's huge Atlantic presence would complement each other. However, he said, combining fleet information systems and labor could pose challenges. The biggest problem would be that neither carrier has any recent track record of integration, he said.
"I would see this as a very risky move from the standpoint of the actual implementation," Mann said.
Associated Press Business Writer Dave Carpenter in Chicago contributed to this report


Well, if you read my post on the top, it states that Anderson was replying to THE AP story that you have above. So, he denied it. Overall, I think they are looking at a possibility of a merger, but only the right one that makes sense. I also highlighted something above that shows why a UAL and DL merge may not be very smart.

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Tanker Clown

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This is probably a pretty sad day for the General. I'm sure he was hoping to get aquired by SWA so he could at least get a pay raise. I was kinda hoping for that too. I figure if he was making SWA money then he could afford better hobbies than posting on FI and asking dudes to double team his wife.
 

General Lee

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Is it me or does anyone else think the General drinks the company kool-aid with every meal.


Goat
Hey, I call it like I see it. I don't see how UAL and DL would be a good fit, only the hedge funds do. I can see a NWA and DL merge being a better fit, though. I never said that we would never merge with anyone, rather I think our leaders are looking for that "right fit." You need to quit drinking all together.

Bye Bye--General Lee
 

General Lee

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This is probably a pretty sad day for the General. I'm sure he was hoping to get aquired by SWA so he could at least get a pay raise. I was kinda hoping for that too. I figure if he was making SWA money then he could afford better hobbies than posting on FI and asking dudes to double team his wife.

Heck no. The pay raise would be nice, but just the possibility of flying to Lubbock or Midland/Odessa makes me want to puke. No thanks. I think any day is a good day without having to fly to West Texas.

Bye Bye--General Lee
 

Tanker Clown

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Hope they don't ask you guys to lower the bar again once you are together. I hear these transitions can be tough. Good luck.
 
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