Who will merge/partner with JetBlue?

[Blue Dude]

Unfortunately, there is this little phenomenon known as a Hostile Takeover, whereas someone with lots of green stuff says Well pay your shareholders double, triple, quadruple, etc etc the stock price of the company to buy outright.

A hostile takeover whereby someone pays JetBlue shareholders the equivalent of $4 billion (double), $6 billion (triple), etc., merely to acquire an airline with 100 aircraft? And in the process more or less destroy any chance the airline has to differentiate itself in the marketplace? That would be self-defeating, not to mention financially stupid.

 

[G4G5]

I have too agree.

Not enough unrestricted cash and too high of a debt burden.

Take AA for example: Amr stock has an approximate market cap of $2 billion(if you decided to purchase every share that's what you would have to pay). AMR reported that they had approximately $3.8 billion in free cash. So for a $2 billion acquisition fee you could get $3.8 billion in cash. One problem, AMR has between $15-20 billion in debt depending upon whose numbers you use.

This is the way airline stocks have always been, I can't ever remember a hostile takeover in the airline industry

 

[FlyBoeingJets]

I have too agree.

Not enough unrestricted cash and too high of a debt burden.

Take AA for example: Amr stock has an approximate market cap of $2 billion(if you decided to purchase every share that's what you would have to pay). AMR reported that they had approximately $3.8 billion in free cash. So for a $2 billion acquisition fee you could get $3.8 billion in cash. One problem, AMR has between $15-20 billion in debt depending upon whose numbers you use.

This is the way airline stocks have always been, I can't ever remember a hostile takeover in the airline industry

NWA had a leveraged buyout in 1989. One of the last. I don't think it was hostile though.

 

[Bob_Sacamano]

Oh god, please don't give them any ideas!

God, you just had to say it! A huge majority of the airline management teams out there ARE self-defeating AND financially stupid. I hope they don't read these posts for new ideas and try a hostile takeover of B6! :laugh:

Good Luck,
Bob

A hostile takeover whereby someone pays JetBlue shareholders the equivalent of $4 billion (double), $6 billion (triple), etc., merely to acquire an airline with 100 aircraft? And in the process more or less destroy any chance the airline has to differentiate itself in the marketplace? That would be self-defeating, not to mention financially stupid.

 

[CUZ]

A hostile takeover whereby someone pays JetBlue shareholders the equivalent of $4 billion (double), $6 billion (triple), etc., merely to acquire an airline with 100 aircraft? And in the process more or less destroy any chance the airline has to differentiate itself in the marketplace? That would be self-defeating, not to mention financially stupid.

You are correct blue dude. It would be self-defeating, and extremely financially stupid for anyone to do so. My numbers were ficticious. However, a quick review of history and (some) of the clowns that have run massive 121 carriers into the dirt might imply that there are indeed folks out there that are that self defeating and financially stupid. I'm convinced one does not need a degree in astrophysics to be a 121 manager anymore. My opinion, we have two good ones working for us.

 

[B6Driver]

"My opinion, we have two good ones working for us."
You better hope to God that you do.
Your gunna need em.

 

[CUZ]

"My opinion, we have two good ones working for us."
You better hope to God that you do.
Your gunna need em.

Dont you work for the same company B6? Wouldnt it be, WERE gonna need em?

 

[RJ Bum]

Spirit/JB

 

[Juvat]

A Jetblue, Airtran, Frontier, Triumvarate

Actually, it will be "The Pentavirate": JetBlue, Airtran, Frontier, Alaska, and the Colonel with his wee, beady eyes.

(Shamelessly lifted from "So I Married an Axe Murderer")