Delta looking at NWA and UAL---Reuters

[General Lee]

Reuters
Delta aims to start UAL, Northwest merger talks - WSJ
Thu Jan 10, 2008 1:14pm EST


NEW YORK, Jan 10 (Reuters) - Delta Air Lines Inc (DAL.N:
Quote, Profile, Research) plans on Friday to ask its board
permission to begin formal merger talks with both Northwest
Airlines Corp (NWA.N: Quote, Profile, Research) and United
Airlines parent UAL Corp (UAUA.O: Quote, Profile, Research),
the Wall Street Journal reported on Thursday.

Citing unnamed people familiar with the matter, the Wall
Street Journal said that Delta would aim to ultimately
choose between the two carriers.

Delta was not immediately available for comment. (Reporting
by Chris Reiter; Editing by Phil Berlowitz)




Please pick NWA if we HAVE to merge....


Bye Bye--General Lee

 

[On Your Six]

The new Delta CEO is probably biased toward NWA anyway. He is probably including UAL as a way to look like he is impartial in the process...

Delta and NWA makes a much more logical combination given the relative lack of hub overlap (UAL/DAL overlaps at LAX, JFK and SLC/DEN) and the complementary route strucutre...

 

[festus]

At least 6 union reps left MSP for ATL this morning.

 

[doh]

Incidently Gen, I flew you guys from PBI through ATL to DFW last week. Very nicely done! We were even on time out of ATL! I have b!tched about you in the past, so you get kudos for this one.:beer:

 

[NuGuy]

God, please let DAL take UAL. I'd hate to have to displace the General from his 767 seat.

It would make me feel bad...for a second....


Nu

 

[General Lee]

God, please let DAL take UAL. I'd hate to have to displace the General from his 767 seat.

It would make me feel bad...for a second....


Nu

When you are my FO, I will buy the third and fifth beers....


Bye Bye--General Lee

 

[Tanker Clown]

When you are my FO, I will buy the third and fifth beers....


Bye Bye--General Lee

The only thing you will be in charge of for the next two decades is your dungeon's and dragons club. I guess you can't get displaced from being the dungeon master. They can never take away your twelve sided dice.

Man, I beginning to wonder if Delta is even a good stepping stone/place to hang until the majors are hiring anymore.

 

[JOPILOT]

Food for thought, I agree with most that the NWA -DAL seems most logical by pilots' viewpoints; less overlap, "more synergies", better base compliments, and Richy is X-NWA which would give him a great working knowledge of the complimenting company.

That said, it could be possible to see UAL-DAL more of what Delta is looking for...DEN+SLC = one base, LAX + LAX = one base, NYC + NYC = one base, ADD DC International, keep ATL and limit ORD or close the mess, and you have what some might call CONSOLIDATION...as opposed to a merger with NWA that provides much more girth domestically but, in my opinion even more labor issues... no offense to the NWA guys/gals.

I have no real preference with whom we merge, since I know the company has my best interests in mind

 

[dtfl]

The only thing you will be in charge of for the next two decades is your dungeon's and dragons club. I guess you can't get displaced from being the dungeon master. They can never take away your twelve sided dice.

Man, I beginning to wonder if Delta is even a good stepping stone/place to hang until the majors are hiring anymore.

Man you SNAPs are getting mouthy these days.....

 

[UALjan15]

None of this smells right. Merger announcements come like "bolts from the blue," and more often than not, it's not what you were expecting. I'm trying to figure out the reason why this would be leaked or come out in a press conference. Typically, this sort of dialogue between mgmt and their boards is highly confidential, due to SEC rules (rule 10b-5). There is a slippery slope to be walked when companies disclose ongoing merger negotiations. This disclosure today of Delta's intentions undeniably swings the stock prices of all 3 airlines, and when stock is part of the merger deal, someone will benefit and the other will suffer. This is why most companies liberally use the term "no comment" when addressing merger questions from the media.

Anyone else have any insight on why this has been disclosed?

 

[dtfl]

None of this smells right. Merger announcements come like "bolts from the blue," and more often than not, it's not what you were expecting. I'm trying to figure out the reason why this would be leaked or come out in a press conference. Typically, this sort of dialogue between mgmt and their boards is highly confidential, due to SEC rules (rule 10b-5). There is a slippery slope to be walked when companies disclose ongoing merger negotiations. This disclosure today of Delta's intentions undeniably swings the stock prices of all 3 airlines, and when stock is part of the merger deal, someone will benefit and the other will suffer. This is why most companies liberally use the term "no comment" when addressing merger questions from the media.

Anyone else have any insight on why this has been disclosed?

The GAU 8 has shaken sense into this man! Praise be! UALjan15, I think you might have some truth here..... Seriously...it might stink again...and if it doesnt...is the DOJ going to let this happen? And another question..why does everyone assume it must be done while a Rep admin is in power. Hillary won NH but her idiotic outbursts won't win her the country.....there is a chance the Rep can win again.

 

[Marko Ramius]

Pilots assume it has to be done with a Rep. admin because most are Repubs and feel that anarchy will result the minute the Dems assume office. Realistically though from a company's point of view it's because of the connections they have with the current admin that may help secure approval. It's easier to deal with them, then a transition admin who is unwilling to put their necks out or the eventual successor admin who you may not have developed a good relationship with. UAL had good connections within the previous admin. and tried to leverage them into quick approval of their UsAirways deal. Didn't work and they ended up dealing with a stalling interim admin, before Pate was put in and by that time the economics of the deal had changed and they were looking for the exits.

 

[scarlet]

told you in Dec. this was coming...

My source pretty good...DFW/LAX/Merger

 

[freeflyer14]

None of this smells right. Merger announcements come like "bolts from the blue," and more often than not, it's not what you were expecting. I'm trying to figure out the reason why this would be leaked or come out in a press conference. Typically, this sort of dialogue between mgmt and their boards is highly confidential, due to SEC rules (rule 10b-5). There is a slippery slope to be walked when companies disclose ongoing merger negotiations. This disclosure today of Delta's intentions undeniably swings the stock prices of all 3 airlines, and when stock is part of the merger deal, someone will benefit and the other will suffer. This is why most companies liberally use the term "no comment" when addressing merger questions from the media.

Anyone else have any insight on why this has been disclosed?

Take a look at what has happened to the stock of the respective companies after a potential merger announcement. Almost always results in positive gains...

 

[UALjan15]

Take a look at what has happened to the stock of the respective companies after a potential merger announcement. Almost always results in positive gains...

So are you saying that this leak (or fabrication) was done just to bounce the stock? If so, we've sure been spinning ourselves up the flagpole for nothing...