Tell this guy:
"UBS Analyst: Delta, Northwest Merger Still Coming Soon"
http://www.btnonline.com/businesstravelnew...t_id=1003722611
UBS Warburg.. I'm most certainly NOT surprised at their perspective "Crissey said investors—
who have salivated at whiffs of a deal—are growing frustrated at perceptions of a lack of progress toward consolidation, as detailed in media reports."
This is the part that will kill the deal:
""Upon the announcement (not closing) of a merger,
Northwest would effectively sacrifice its Golden Share over Continental, which currently prevents Continental from merging without Northwest's consent (under most reasonable circumstances). Therefore, Northwest needs to be certain that whatever deal it announces will close."
Crissey said that even if labor
groups (I am assuming they are referring ONLY to pilots and NOT the other 26,000 NWA employees) throw their support behind Delta and Northwest, other forces could undo an agreement, including DOJ or political pressure. Still, Crissey said, "We believe the window for these deals to be announced is closing and that, given the upward move in fuel prices, labor may want to view the current proposal in a more favorable light."
Every other Union on the property stands AGAINST this. We have sacrifice far too much (for this balance sheet) to position this company then hand it to RAnderson for any number of reasons. We simply have a great deal to lose vs. gain.
We will lose the "Golden Share" (if the merger attempt fails, which I believe it will because of the enormous opposition at NW)
We will lose Continental to another alliance
We will lose the safe harbor of our balance sheet (earned on the backs of NW employees) by assuming tens of Billions in additional Delta debt.
We will lose one of the oldest names/history in World Aviation, simply because we have a far smaller debt ($3.6 Billion NOL-non operating loss from BK) carry over than Delta $9.1 Billion NOL WHICH MUST BE USED WITH IN TWO YEARS OF EXITING BK (which they will lose if Northwest is the surviving name) THAT is the REAL reason the "Delta" name has been chosen. That is why there is not a "Delta/Northwest" name. It HAS to be under "Delta" because of the money.
We will have sacrificed our future for what?
If Steenland / and that thing they call a NW BOD knows whats good for them, they will let this die quietly before it gets nasty. It will NOT pass the DOJ when you have an ENTIRE company (outside of 1/2 the pilots, and of course Steenland inc. ) 100% against it.
p.s. did I mention years of internal legal battles between a heavily unionized workforce and a company notorious for being vehemently ANTI-UNION?
A poisonous combination indeed.
