US Airways raises the offer to 10.2 Billion

[FlyBoeingJets]

The BK judge already approved the DL pilots' contract. Nope.


Bye Bye--General Lee

I wouldn't say "Nope" until after you exit BK.

 

[EdTeachLives!]

DP raises the offer 20%? I thought DL's valuation was "suspect". Appears perhaps it it was not and DP was trying to get DL on the cheap side.

So, this extra 20% is in cash, right? Nope. It's all added debt. Wonderful idea! Now the combined entity will have over 22 Billion in debt! DL's stand alone plan has it emerging with 8 billion in debt which is excellent compared to its 20+ billion it had prior to BK.

So if this is consumated, you have an extremely over leveraged airline with reactionary mergers that follow. Immediately you have a third tier air carrier with no Pacific rim exposure that will have to divest itself of critical east coast landing slots, gates and routes. The resulting reactionary mergers will produce stronger airlines with superior networks, and, they scoop up the divested assets as well. Excellent plan. Brilliant!

This increase appears to be a last ditch attempt to save face for Parker as it now has a drop dead date on the deal. Great way for him to say the deal died on his terms rather than face rejection on all other aspects of the proposal.

 

[PCL_128]

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

I tend to agree with you that this deal won't happen, but the Senate and the House aren't the ones that can strike it down. They can hold hearing and make recommendations, but the DOJ is the decision-maker.

 

[General Lee]

I wouldn't say "Nope" until after you exit BK.

Well, he did approve the DL pilots' contract, and that is why Parker even acknowledged that fact. Remember, Moak stated the USAir people initially thought they were "technicalities", which then went to "items unexpected." That is what I said "nope" to. As far as the takeover, I would say very unlikely---especially with the government now getting more involved. And, the creditor committee still will probably favor DL's plan, for the same reasons Phillip Baggely stated "less aquisition debt (now not $4 billion but $7 billion or more), DOJ scruitny, employee integration problems, etc..."


Bye Bye--General Lee

 

[General Lee]

I tend to agree with you that this deal won't happen, but the Senate and the House aren't the ones that can strike it down. They can hold hearing and make recommendations, but the DOJ is the decision-maker.

Oberstar tends to think he can lean on the DOJ:


Oberstar (chairman of the transportations sub committee) said that by publicly exposing the potential dangers of airline consolidation, his committee may be able to "throw cold water" on merger mania. "We can nudge the Justice Department to take the action they must" to prevent a loss in competition, he said.
Oberstar also said opposition to consolidation is bipartisan. "I’ve heard from members on both sides of the aisle" as worries have grown about the impact on jobs and service, he said. "I haven’t heard anyone come forward and say this is a really good deal."






Bye Bye--General Lee

 

[lookin4better]

IF ....and thats a big IF, this goes through....I bet we can count on merger frenzy.....I wont even guess who.....but others will follow in the consolidation....

 

[General Lee]

I tend to agree with you that this deal won't happen, but the Senate and the House aren't the ones that can strike it down. They can hold hearing and make recommendations, but the DOJ is the decision-maker.

Oberstar thinks he can LEAN on the DOJ to stop this:


Oberstar (chairman of the transportations sub committee) said that by publicly exposing the potential dangers of airline consolidation, his committee may be able to "throw cold water" on merger mania. "We can nudge the Justice Department to take the action they must" to prevent a loss in competition, he said.
Oberstar also said opposition to consolidation is bipartisan. "I’ve heard from members on both sides of the aisle" as worries have grown about the impact on jobs and service, he said. "I haven’t heard anyone come forward and say this is a really good deal."



Bye Bye--General Lee

 

[General Lee]

IF ....and thats a big IF, this goes through....I bet we can count on merger frenzy.....I wont even guess who.....but others will follow in the consolidation....

You're right. And that would leave US/DL as the small guy on the block. We would have hardly anything in Asia, and we would go up against CAL/UAL, and probably AA/NW (since the DOJ would approve US/DL--they would probably approve everyone else). Those two monsters would crush us. That is another supposed worry for some of our creditors. AA/NW and CAL/UAL would have complete route structures, and we would be lacking.


Bye Bye--General Lee

 

[spinproof]

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

Oh and you do!

Wow and you didn't mention Oberstar one time.....!!!! spoke too soon!!!...now klick your heels three times and sing..... When you wish on Oberstar makes no difference who you are, when you wish on Oberstar your dreams coooommmmmeeee taa-rue!

 

[General Lee]

Oh and you do!

Wow and you didn't mention Oberstar one time.....!!!! spoke too soon!!!...now klick your heels three times and sing..... When you wish on Oberstar makes no difference who you are, when you wish on Oberstar your dreams coooommmmmeeee taa-rue!

You can't debate, so you try to make fun, and instead look dumb.


Bye Bye--General Lee