Exxon-Mobile to buy SWA

[hopeful]

Rumor has it new hire training at SWA is slowing down pending an announcment by Exxon-Mobile to make an offer to buy SWA. $80 a share for the preferred stock. SWA would be in the neighborhood of $1-$2.5 billion a year in profits. This is assuming scheduled service as it exists now with fuel being lowered to approx 45 cents per gallon of Jet A. (exxon-mobile cost of production)

All existing SWA management would stay in tack and it would result in $10-$15 billion cash infusion to fuel growth and expansion globally with SWA service. Common stock is predicted to trade in the $35-$45 range if this in announced. (lots of early retirements)

Interesting rumor.

 

[eagleb2skipper]

riiiiiiiiiiiight

 

[brownie]

and aljazerra is buying fox news

 

[lowecur]

Makes perfect sense to me

I guess this is why Herb wanted the pilots to hang around till Tuesday before they retire. If it's true, I think they would have a tough time getting it past Sherman Anti-Trust. We'll know more Tuesday.

 

[Stifler's Mom]

and aljazerra is buying fox news

It is true. Here is their first combined report.

ALJAZEERA/FOX Story

Sorry for the thread hijack, but the initial posting is too absurd to stay the course.

 

[General Lee]

I bet that would make fuel hedging really easy.....



Bye Bye--General Lee

 

[AFcitrus]

Interesting - because I thought I heard that some members of Exxon-Mobile's board of directors also sit on another airline's board of directors - I forget which one. I could be wrong, but if not this could get interesting. So much for SWA not being bought out by anyone else.

If anyone else can verify this, please do so.

 

[General Lee]

Finally, a company that can afford to buy SW! What was their net profit last quarter? $5 billion?



Bye Bye--General Lee

 

[walden]

I guess that would mean HPA would be owned by Exxon? Maybe Capt. Joe Hazelwood would come in and guest instruct a few of the systems classes. I'm thinking the oil system class would be a nice fit for the Capt.

 

[KeroseneSnorter]

It would be a sure way to bury the competition. Every other airline would have to be owned by an oil company or quit flying. No way to beat JetA at refinery cost!

If you want to ensure a good price on Dinosaur Squeezings......merge with the folks that snarfle the critters out of the ground.


According to ALPA (yeah, I know...) and the last quarters numbers, SWA would have posted a loss had it not been for their fuel hedging. As I understand it, they are hedged for another couple of years but at reducing figures each year, meaning that they will have to be buying more and more "Pump gas" so to speak at the same cost as the other carriers.

Given SWA's past track record of always being at the right place at the right time, this rumor may not be so far fetched.

Just a thought.......... random thought that is.......from a random mind.....a disorganized random mind.............hey is that a spider in the corner?

 

[airlinepilot]

Talk has it......

Those in the know at Dallas have been telling a few behind the scenes that an announcement was coming that would "BLOW EVERYONE AWAY".....maybe this is it!!!!!!!!!

 

[freightdogfred]

Talk about a tough bid to sort thru...Do I bid Ca. outta Oakland, or a Chief Engineer's seat outta Valdez??

Chief Oiler probably makes 3 times the cake...

 

[Kerrigan's Bane]

What's in it for Exxon?

Sounds like a great deal for SWA...

But why would an oil company pay full fair market value for a profitable company, with the main "synergy" achieved from the purchase the coveted ability to sell a lot of gas at wholesale rates?

Doesn't seem to be any shortage of companies with their wallets out willing to pay market rates for gas.

In MBA-speak, what "core compentency" does Exxon have that would produce greater total profits between the two companies?

Doesn't pass the stink test.

 

[walden]

In other news, Esso is buying a controlling stake in Pan Am. Worldcom will be the new conglomerate's communications provider, with HealthSouth out of Birmingham providing health coverage.
I know I'm poking fun, and I love a good rumor as much as the next guy but I have to agree with Kerrigan on this one.

 

[vc10]

Dumb rumor. Apart from anything else (and there are a lot of reasons why this is a dumb idea) the market price of Jet A is the market price of Jet A. If Exxon chose to supply SWA with it for under market prices, then the resulting profits of SWA aren't real. All you're doing is transferring dollars from one pocket to another (assuming SWA is owned by Exxon).

Rumor has it new hire training at SWA is slowing down pending an announcment by Exxon-Mobile to make an offer to buy SWA. $80 a share for the preferred stock. SWA would be in the neighborhood of $1-$2.5 billion a year in profits. This is assuming scheduled service as it exists now with fuel being lowered to approx 45 cents per gallon of Jet A. (exxon-mobile cost of production)

All existing SWA management would stay in tack and it would result in $10-$15 billion cash infusion to fuel growth and expansion globally with SWA service. Common stock is predicted to trade in the $35-$45 range if this in announced. (lots of early retirements)

Interesting rumor.

 

[RVSM]

Thanks Hopeful and Brownie,
I almost shot coffee out my nose from laughing.

The "big" rumor thing has been going around for a couple of weeks now. The more the buzz the more minor the announcement has been based on past history.

I like the $35 stock idea.
CAS

 

[blzr]

Seems like they would want Airways, It would be cheaper. With fuel prices that low they could just about turn a profit.

 

[bafanguy]

As astute as SWA management has always been, you'd think they'd immediately step forward to dispel this "rumor" if it were truly false.


If it's true...beginning of the end. When you start polluting the gene pool with outsiders, everything that has made this airline magic since 1971 goes up in smoke. Yes....it does...

 

[juan2go]

Big Announcement

Herb got a new car!

 

[furloughfodder]

If it's true...beginning of the end. When you start polluting the gene pool with outsiders, everything that has made this airline magic since 1971 goes up in smoke. Yes....it does...

oh come on, we all know that SWA is invincible.