Gordon at it again

[Hypoxik]

[FONT=&quot]Hedge fund hires former airline CEO to speak out for merger
[/FONT][FONT=&quot]Former Continental Airlines CEO Gordon Bethune is working for a hedge fund that is urging United Airlines and Delta Air Lines to merge. Bethune has been pitching the merger to other groups of investors. The Atlanta Journal-Constitution (free registration)[/FONT][FONT=&quot] (12/2)

Fairly good guy to the labor force, I'm surprised. Wouldn't think he'd do this type of thing.
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[Dan Roman]

My first reaction is that it may not be in the best interest of the 2 airlines over the long haul, but Gordon and some others would make a lot of money if they pull it off.

 

[Clacker]

Yeah, my first reaction was that Bethune was shilling for Pardus, but since they're paying him, I guess he's just a salesman...

"Let's put some lipstick on this pig."

 

[General Lee]

Of course Gordon is getting paid by this hedge fund, trying to "sell" a ridiculous plan. The fund has a whopping 2% of Delta and 5% of United, but for some reason can't see the overlap, primarily between IAD/JFK, DEN/SLC, ORD/CVG, and a presence from both at LAX. They are allowed though, as large shareholders, to express their opinion about where they would like to see both airlines go. I am sure people are listening, but not much else really.

Bye Bye--General Lee

 

[whymeworry?]

Both stocks are duds, more or less, considering they were IPOs of newly released post ch-11 companies. Karim Samii wants to dump his shares and get paid big in the process. So he tries to use his clout as a large shareholder to effectuate a process he believes will be impossible to stop once started.

Problem is, even if started it can and will more than likely be stopped. The deal will never pass muster at the DOJ or Senate/ Congress...unless oil goes to $200/ bbl, which isn't going to happen as the speculators are too tapped out to bid it that high.

Two years from now, when OPEN SKIES is in full play, the landscape for change will be more inviting. I would estimate that just about any deal will pass the watchful eye of the US Govt at that time since the European carriers will try to outsize our airlines.