US Airways raises the offer to 10.2 Billion

[Headfake14]

www.Southwest.com
about us tab, then click on
careers tab.

been there...done that...waiting for my next try...

re-eligible in feb:beer:

 

[Mr Wu]

It'll mean instant high seniority for the DAL new hires when they tack the US/AWA list onto the bottom.

 

[mnboyev]

Ouch.

 

[FDJ2]

Parker is getting desperate. We'll have an answer soon enough, since this deal falls apart after Feb 1st, if the Creditors don't quickly jump aboard.

Congressional hearings are set to start soon enough. I hear Boeing has quite a few government contracts.

 

[Lear70]

www.Southwest.com
about us tab, then click on
careers tab.

ROFLMAO!!!

THAT'S pretty much the funniest post of the day, right thar...

That'll keep a smile on my face for a while, thanks.

2 years, 3 months, and 28 days since my first "thanks anyway" letter. LOL

Whatever. Life goes on.

Incidentally, I think this DAL game just got a whole lot more interesting. The only thing standing in the way IMHO is Oberstar & Company. I find it VERY intriguing that they fired up the committee to look at this BEFORE the UAir announcement to up the ante.

Methinks someone in DC knew a little more than the rest of us. Wonder if they made any money off the stock? *snicker*

 

[TWA Dude]

I predict that this higher offer will completely convert General Lee into the biggest supporter there is.

Know where Dougie got the extra money from? Every USAirways employee pitched in. You've heard of employees helping paying for a new airplane; this time we're helping buy a new company! Delta guys can pitch in as well.

(nyuk, nyuk, nyuk)

 

[FlyBoeingJets]

You are especially correct with your last statement. Of course this also proves that DP was just cynically lowballing the creditors trying to buy DAL on the cheap. And most cynically, even he has admitted that the entire plan only makes sense if DAL's BK is extended.

Now that is one great business plan--extend your takeover target's time in BK or the deal makes no financial sense. Gee why would DAL employees not jump for joy over this prospect?

Why do you think the creditors, financiers and buyer should care whether or not the DAL employees think this is a great deal for them???

UAL seems to be doing just fine running roughshod over their employees. And at AA, wow, they really enjoy their management's antics. Despite what we know about integration issues at USAir, they are making money and have little risk of going Ch 7. Which was THE fear for them for years now.

If the pilots at DAL have contract provisions that will enable them to torpedo this deal, Parker doesn't seem to worry about them. I wonder why. Is he thinking the BK judge will negate the contract after a merger??

 

[General Lee]

Read it and weep General

This is all over but the shouting
http://biz.yahoo.com/prnews/070110/law023.html?.v=84

Wow, I should read it and weep? Huh? The Government came in yesterday and stated there would be hearings, and both the Senate and House don't seem very interested in this deal at all. They will strike it down, even if the creditors somehow said yes to this new deal (5 of the 9 on the committee are friendlies). I still can't wait to see Parker testify in front of the Senate and the House panels. Say it with a straight face Doug--"We will lower fares, and this is good for the consumer.....taking one of two airlines out of many cities in the Southeast...." Riiiight. It is all over but the shouting (was that the case with US and UAL?).


Bye Bye--General Lee

 

[General Lee]

Why do you think the creditors, financiers and buyer should care whether or not the DAL employees think this is a great deal for them???

UAL seems to be doing just fine running roughshod over their employees. And at AA, wow, they really enjoy their management's antics. Despite what we know about integration issues at USAir, they are making money and have little risk of going Ch 7. Which was THE fear for them for years now.

If the pilots at DAL have contract provisions to torpedo this deal, Parker doesn't seem to worry about them. I wonder why. Is he thinking the BK judge will negate the contract after a merger??

The BK judge already approved the DL pilots' contract. Nope. Doug is simply trying to talk to the creditors, and he hasn't obviously talked to the BK judge or anyone else who knows what is going on.


Bye Bye--General Lee

 

[johnsonrod]

So, Doug's original offer was just a low ball offer? I thought he said the first offer was fairly valued? This is getting ridiculous... Why not add another $10 billion to the pot?

In the end, I don't see this merger happening for a number of reasons:

1. DOJ will not allow it fearing the merger will give a green light to additional mergers (UAL + CAL and AA + NWA) and thus vastly reducing competition for consumers (note Dorgan's and Oberstar's comments from yesterday). You can't agree to one merger and then not allow others... The route maps for Delta and USAirways almost completely overlap in the US too - it is very obvious.

2. The politicians from Georgia, Utah and Ohio (where they have massive Delta constituents) will never allow it given potential layoffs

3. A hostile takeover in a service business is never a good thing and it sounds like Delta's employees are "united" against a hostile takeover when a standalone and eventually profitable Delta is very possible

4. Everyone will see that Doug can't even handle his own AWA/US integration - what a mess!

5. I doubt that DALPA, Boeing and others will go through with it given their own interests in Delta going forward.

Sure, money talks. But, in the end, the DOJ can override that.