Hedge Fund seeks UA/DL Merger

[donttouchthebeauty]

Beauty, you are the one who is naive.

For one, how would anyone here know your seniority unless you post it?

Two, AFA will have to be voted in by both airline groups because its a merger.

Three, AFA is all about DOH (so they probably will go DOH anyway...which they should).

Four, overlap means FURLOUGHS!

Five, and this is the BIG ONE....how do YOU know this isn't a Delta take over of United? They could be buying YOU! STAPLE!!!!!! And then......guess what?!? NO UNION! BUH BYE!






Honestly, you are the cruelest sounding person. I remember when United had 27,000 flight attendants and I was safe and sound. Yikes! I still rest under the 5,000 mark but it was scary to see them fall down to 16k. Be careful acting like this is something United controls...........THEY DON'T! United does NOT have a leg up on this. Mergers are NOT a great thing for employees (which proves to me that you may just be the one whos head is on the chopping block)


(my magic mirror say that Beauty has about 5 years seniority)



((if I'm wrong, she has 6 years seniority))



(((Beauty, the only way to get seniority is to WORK and AGE)))


((((Fly has seniority because her dad took her to 'bring your kid to work day' and they hired her' ))))

ARE YA FRIKKIN KIDDIN ME??? Give me a break, I don't rely on this job, (unlike you) and I could give a crap less, I have been through mergers and BK and furlough with the airlines, and you know what, anything can happen... But you are so un-edumedicated, DAL and UAL has virtually no route overlap - guess since you are so senior you should know that huh? Seniority doesn't bring wisdom - in fact, it often brings STUPIDITY... case in point - your post... It is quite frankly, none of your business where I stand on the seniority list, and for all you REALLY know, I could be senior to you (I hope you don't get all your info from your magic mirror.. LOL) ... AGE does not bring you SENIORITY, There are many new hires that are 50+ (get a clue)... I started this industry when I was 21, I have always stuck by the 2 carriers I have worked for, and let me just tell you, They could tell me we are being purchased by FRONTIER tomorrow and that wouldn't surprise me.... I just look at the general picture, and that is what many of you forget to do... FLY, you are bitter b/c of what you lost, and you don't like it one bit... Just be glad you still have a job, because you obviously need it, unlike myself.... If you don't like it at UAL, then leave, and don't let the door hit you... I am sure some other carrier would love to have you (or some other industry, i would hope)... Get over the fact that whats done is done, work to improve the future and don't live in the past constantly, you and strAAight must be sisters.... Whatever happens, happens.... Hopefully they offer a buyout though, if they do, well..... Good luck to you though FLY!!!

 

[Fly]

ARE YA FRIKKIN KIDDIN ME??? Give me a break, I don't rely on this job, (unlike you) and I could give a crap less, I have been through mergers and BK and furlough with the airlines, and you know what, anything can happen... But you are so un-edumedicated,

I'm Un-edumedicated?!? Is that how you got through your classes? A little Upper here and there, huh?


FYI - As I've stated (over and over....but you seem to have a reading comprehension problem. I'm no doctor but it could be the edumedication!) I don't fly any longer. I don't care about yours, mine or ours. I did my due diligence. Now I'm through. You try to give the impression to others that you are on two seniority lists which we know is pure BS. But, most people here have read your posts, so BS is the name of the game with you.......so I suppose "Mr Obvious" abounds. "Mr Obvious" just told me that you need to have a drug test....he thinks you must be smoking too much whacky tobacky.

Shame, such a waste of such a piece of white trash.

 

[rotate]

Pardus is executing brilliantly. They are putting pressure on both DL and UA boards. But most brilliantly, they are setting up a bidding war between AF/KL and LH for the 25% allowed under US law. Their stakes in both DL and UA will appreciate as the bidding escalates.

This is a zero-sum, winner-take-all competition between Skyteam and Star Alliance. The winner will pay dearly and the loser will lose tons of traffic.

As usual, the financial manipulators inside and outside of the airlines will benefit most.

 

[ThirdSeatHero]

Five, and this is the BIG ONE....how do YOU know this isn't a Delta take over of United? They could be buying YOU! STAPLE!!!!!! And then......guess what?!? NO UNION! BUH BYE!

I'm not quite sure where you bought that line of thinking but I sure hope you kept your receipt.

The aquiring entity in a merger DOES NOT determine union representation or lack there of.

 

[JungleClone]

It would appear that Glenn Tilton is now moonlighting as head of Pardus Hedge Fund.

 

[magsau]

Something tells me that when this news broke yesterday, WorldTraveler and one infamous US320 pilot were felled with cold sweat and perhaps a bit of true anxiety. Wouldn't that have been a sight to see!

 

[FrugalFlyerv2.0]

Something tells me that when this news broke yesterday, WorldTraveler and one infamous US320 pilot were felled with cold sweat and perhaps a bit of true anxiety. Wouldn't that have been a sight to see!

I'm sort of shocked and amazed neither one has posted a comment or two.

 

[EMBFA]

I wouldn't think he'd be that interested since he got fired.

 

[magsau]

I wouldn't think he'd be that interested since he got fired.

Which one? WT or the other one?
You can PM the details if you wish to do it in private.

Cheers,
M

 

[novaqt]

FYI - This from Barron Online, November 15, Soapbox Comments

Airline Mergers May Be in Formation
Morgan Stanley

AS MERGER-AND-ACQUISITION SPECULATION heats up, we expect interest in the group to support airline shares. Any deals that are ultimately announced would be a significant, positive catalyst for the stocks. Consolidation would rationalize the number of players in the industry, as well as U.S. domestic capacity.

We see consolidation as extending the cycle of strong industry pricing for at least another 12-18 months. As such, we do not believe that all the good news on consolidation is priced into the stocks and would expect to see further strength should M&A occur. We remain constructive on U.S. airlines, preferring legacy airline stocks over discounters. Our top picks are Delta Air Lines, Northwest Airlines and USAirways Group.

On Wednesday, the Wall Street Journal reported that activist hedge fund, Pardus Capital Management, had sent a letter to Delta's management indicating that growing macro concerns (fuel and the economy) are threatening to derail the nascent airline's financial recovery. The letter strongly recommended consolidation as a way to improve the financial outlook for the company and specifically recommended that Delta merge with UAL's United Airlines. As M&A speculation heats up, we expect interest in the group to support shares but believe that it is unlikely we see significant appreciation until an actual deal is announced.

To be clear, we support industry consolidation in whatever form, as we believe fewer players would be helpful to returns. While a potential United-Delta combination is powerful from a network combination standpoint, other combinations could drive greater synergy and higher returns. We believe returns are worst in the domestic airline market. Combinations that eliminate domestic overlap would yield the best returns to shareholders, in our view. Last year's proposed USAirways-Delta merger was an example of a merger that could eliminate substantial overlap. The challenge with mergers that have substantial overlap is that the reduction in domestic capacity could make it difficult for labor and regulators to support the deal.

We recommend that investors buy legacy airline shares. We believe that the economic arguments for M&A are compelling and that the drumbeat for consolidation will grow louder. We prefer shares of Delta, Northwest and USAirways (all of which we rate Overweight). We prefer legacy airline shares over low-cost airlines. If M&A fails to occur within the next few months, then it is unlikely to occur before 2009 (in our view). If this scenario plays out, then we still prefer carriers with either company-specific catalysts (Delta and Northwest) or valuation support (USAirways).

If consolidation were to occur, we believe there remains substantial upside left in the shares. Recall that last year, after USAirways unsolicited bid for Delta, the AMEX Airline Index jumped 20%. Some stocks, such as USAirways and Continental Airlines rose more. If consolidation is announced in the next few months, we believe investors who are long the U.S. legacy airline stocks will profit handsomely.

The economic logic of M&A in the airline industry is compelling, and there are a number of issues to consider. First, there is a concern that the regulatory window is closing. Due to the change in the administration later in 2008, we believe that any deals that are not announced by January 2008 have little chance of being approved in 2008. We think pressure to "do a deal" sooner rather than later is growing.

Although there are very compelling economic reasons for merging, let's not forget that the industry has just emerged from the most difficult period in its history. Managers may be reluctant to assume a new, extremely complicated task of merging two large, global airlines.

Finally mergers have been difficult for labor groups, as they often mean rationalization of some job functions, but more importantly, integration of seniority lists. The integration process can be long and painful for union leaders and employees. But a merger that promises growth could gain labor support, in our view.

-- William Greene
-- John Godyn


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The opinions contained in Investors' Soapbox in no way represent those of Barron's Online or Dow Jones & Company, Inc. The opinions expressed are those of the newsletter's writer(s).
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I thought the above article is rather interesting. Looks like this analysis believes, rightly so, that the regulatory window under the current administration is coming to a close and consolidation must happen within the next few months. With a change in administration, the opportunity could disappear even if Congress and/or Senate is split between the parties.

 

[chucky]

No let up from Pardus......






Pardus pitches Delta merger to investors - sources
Fri Nov 16, 2007 10:24am EST

¥ € $ - Learn. Practice. Trade.NEW YORK, Nov 16 (Reuters) - Hedge fund Pardus Capital Management LP, lobbying for a merger between Delta Air Lines Inc (DAL.N: Quote, Profile, Research) and UAL Corp (UAUA.O: Quote, Profile, Research), plans to pitch its proposal to other investors on Friday, sources close to the situation told Reuters.

The meeting, hosted by Merrill Lynch (MER.N: Quote, Profile, Research), marks the latest move by investors to pressure the management teams of U.S. airlines to restructure the volatile industry as surging oil prices and a slowing U.S. economy threaten a fledgling recovery.

AMR Corp (AMR.N: Quote, Profile, Research) faces pressure from shareholder FL Group (FL.IC: Quote, Profile, Research), which has urged the parent of American Airlines to consider spinning off its frequent flyer program and other assets.

Pardus, which holds about 2.5 percent of Delta's outstanding shares and about 4.8 percent in UAL, has recently emerged as a leading provocateur of U.S. airline consolidation.

On Tuesday, it sent a letter to Delta management, urging an all-stock merger between that company and UAL.

The activist fund argued that United's hubs on the West Coast, its presence in the Pacific and its slots at London's coveted Heathrow airport match well with Delta's routes to Europe, its New York presence and its position in Latin America.

The Friday meeting will provide a forum for Pardus and its adviser Gordon Bethune, the former chief executive of Continental Airlines Inc (CAL.N: Quote, Profile, Research), to present their analysis to investors, sources close to the situation said.

The forum provides an opportunity for Pardus to rally support from other investors and could lead to increased pressure on Delta and UAL.

Pardus is the sixth-largest institutional shareholder in Delta, with a stake worth about $137 million, according to Reuters data. Its interest in UAL, where it is the seventh-largest institutional shareholder, is worth about $237 million. Continued...

Story

 

[novaqt]

Here's a news item that appeared in yesterday's Atlanta Journal.


http://www.ajc.com/business/content/busine...delta_1118.html

 

[JungleClone]

UA/DL is not going to happen. I think NW/DL is much more likely. The higher the price of oil goes, the more desperate airline CEO's and BOD's become. On a normal day, you're not talking about people who make good, rational economic decisions. When under pressure, oh my, the possibilities are endless!