Rep Duncan says if Merger gets to them, it's going to be tough to block

[wms]

Justice Department Rejects Proposed US Airways, United Airlines Merger.

From: Knight Ridder/Tribune Business News | Date: July 28, 2001

http://www.highbeam.com/Aspx/GetPubL...usine ss+News

The Charlotte Observer, N.C. Knight Ridder/Tribune Business News
Jul. 28--The US Airways deal is dead.
The Justice Department strongly rejected United Airlines' planned $12.3 billion takeover of US Airways Friday, saying it would have reduced competition, raised fares and harmed airline passengers.
"While mergers can further competition, this one does not," said Attorney General John Ashcroft. "If this acquisition were allowed to proceed, millions of consumers would have little choice but to pay higher fares and accept lower quality air service."




Bye Bye--General Lee

THANK YOU, SIR, MAY I HAVE ANOTHER!!!

 

[TWA Dude]

So, someone who actually has answers that make sense bothers you. Doug really has brain washed everyone there in PHX. Wow.

Huh? I don't understand how your reponse corresponds to my last statement.

 

[Marko Ramius]

General,

I think TWA Dude had it right, it's just semantics. Just like writing an extract paper back in college where you had to get the ultimate point not the details, alot of articles leave out the nitty gritty of how exactly things end up the way they do. It's not really interesting to most people because the end result is the same, it's only interesting to us here because there has been disagreement here over how the DOJ does what it does and the UA/US case.

FDJ2,

I agree with you on the failing carrier deal. What I was trying to say is that in most mergers involving a bankrupt carrier, both parties have agreed to the merger beforehand and attempt to get Justice to approve it quickly via the failing carrier doctrine. That isn't the case here, which is why I said it would be a weird deal. This is definitely speculation, but logic says if Parker were to get past the creditors, most of DL management would be replaced or otherwise motivated to get with the new program which means working with DOJ. Imo, failing carrier doctrine would only come into play if Parker holds onto to DAL for a year or so of DOJ wrangling before walking away from the deal. That would put DL in a much weaker cash position and likely searching for a partner. Seems unlikely though, I think Parker just plans on letting the DOJ pick what it wants removed the deal and fragmenting those assets. Kind of bold/dumb to say it ahead of time, but it looks like they're doing just that......
http://www.thestreet.com/_yahoo/newsanalysis/businessnews/10333327.html

 

[AA717driver]

GL--TWAdude corrected a misconception on FDJ's part. FDJ equivocated by saying 'well it's the same'. It's not the same. It may have the same result but it's not the same.

Just like on another thread you're still beating the drum that the CBA can't be changed because "the judge approved it". The judge approved it based on the recommendation of the creditor's committee. If someone swayed the creditor's committee to change their position (on a variety of items) then they would go to the judge and request a change to the CBA. If they could convince the judge that it was necessary and in the best interest of the creditors, the CBA would be changed and once again, approved by the judge.

I guess the reason I'm interested in this topic is because I've lived through it. We fooled ourselves on a lot of issues surrounding the Ch.11 process and I can't sit idly by while others fool themselves.

I'm telling you--you are whistling through the graveyard with your blizzard of posts. The deal will be made or not made before you or anyone else here has a inkling and the puny employee groups, creditors or not, can do little to stop it.

Now, you can keep on posting and keep on believing what you read in the papers (I was a journalism major so I know what kind of people are doing the writing. ) but it won't change the outcome. The deal is being made or not made in the back rooms, hotel suites, private jets or wherever--whatever, we don't have a say.

Good luck. TC

 

[thruthemurk]

<<I'm telling you--you are whistling through the graveyard with your blizzard of posts. The deal will be made or not made before you or anyone else here has a inkling and the puny employee groups, creditors or not, can do little to stop it.>>

Great post and right on the mark.

 

[General Lee]

Really? Can you back up your statement? Probably not.

<<I'm telling you--you are whistling through the graveyard with your blizzard of posts. The deal will be made or not made before you or anyone else here has a inkling and the puny employee groups, creditors or not, can do little to stop it.>>

Great post and right on the mark.

By Paritosh Bansal

NEW YORK, Jan 19 (Reuters) - Delta Air Lines revised some conditions in its reorganization plan on Friday, giving creditors a larger say in its future, and indicated it would soon present its analysis of a takeover bid by US Airways Group to its board.

Delta (DALRQ.PK: Quote, Profile , Research), which is the target of an unsolicited $10.2 billion takeover offer from US Airways (LCC.N: Quote, Profile , Research), has said that it wants to exit bankruptcy protection as an independent carrier, but it needs the support of its creditors to succeed.

In the revised plan of reorganization filed on Friday, the airline gave its official creditor committee more say in requirements for approval of the plan, changing some clauses that were earlier to be decided solely by the company to include the opinion of the creditors' committee.

"It looks like the creditors' committee is trying to have more input into it," said Joe Capobianco, a partner in the New York law firm, Reisman, Peirez and Reisman. "That's probably been negotiated by the creditors' committee to get more say into the situation."

Atlanta-based Delta rejected a Nov. 15 takeover offer from US Airways, but the rival pushed ahead with its bid and raised its offer by about 20 percent earlier this month. Delta, the No. 3 U.S. carrier, said its management and advisers were studying the increased bid, but it reiterated that it still intended to exit bankruptcy independently. Delta's management and advisers are currently evaluating the revised US Airways proposal, in anticipation of making a further presentation to Delta's board of directors in the near future," the airline said in a revised disclosure statement, filed in a New York bankruptcy court. Delta, which has been operating under bankruptcy protection since September 2005, also recommended that creditors vote for it to exit Chapter 11 independently. Under its own plan, the airline projected 62 percent to 78 percent recovery for certain unsecured holders of impaired claims, or debt that would not be repaid in full. For its Comair subsidiary, it projected 76 percent to 100 percent recoveries for such creditors. Delta assumes that unsecured creditors hold about $14.2 billion in claims, and about $800 million against Comair. Holders of at least two-thirds in dollar amount and more than one-half in number of impaired claims must approve the plan. The court also needs to approve any plan. The airline also said that it no longer plans to have an equity rights offering, which would have allowed creditors to buy additional shares in the reorganized company. The airline said it plans to list shares of the new company on the New York Stock Exchange or Nasdaq.





Looks like you might be wrong. The Creditor Committee will have more say now, and they are full of employees (Dalpa) and creditors who seem to be in favor of our cause. Why would DL give them more power, unless they knew how they were going to use it?


Bye Bye--General Lee