US Airways seeks to double share authorization
- Thread starter USA320Pilot
- Start date
OP
USA320Pilot
Veteran
- May 18, 2003
- 8,175
- 1,539
- Thread Starter
- Thread starter
- #17
Deleted by moderator,,,,,,check your pm USA320pilot
By the way...during the past 12 months US Airways' security has traded at around $10 per share four times. $10 per share times 200,000 shares equals how much?
I have no idea what US Airways' Board and Executive Suite plans to do with the share offering, but I believe there continues to be smoke around M&A activity and when there is smoke many times there is fire. And, according to the news media US Airways has tried to acquire United and Delta Air Lines in the past. Maybe American will be next.
Regards,
USA320Pilot
By the way...during the past 12 months US Airways' security has traded at around $10 per share four times. $10 per share times 200,000 shares equals how much?
I have no idea what US Airways' Board and Executive Suite plans to do with the share offering, but I believe there continues to be smoke around M&A activity and when there is smoke many times there is fire. And, according to the news media US Airways has tried to acquire United and Delta Air Lines in the past. Maybe American will be next.
Regards,
USA320Pilot
beachboy
Veteran
- Jul 7, 2006
- 1,484
- 48
USA320Pilot- Can I suggest you get a hobby? A rock polisher? Ant farm or maybe a coin collection? If that's your *** and giggles wow. I flew with you once and while a fine pilot you drove the crew nuts. I like you in a way ....but sometimes we want to just lock you in the closet and beat you half the time. Like the red headed step sister.
freedom
Veteran
- Feb 15, 2006
- 3,244
- 274
the only thing on fire right now is our blance sheet ... M&A is from the past , your thinking like it's 2007 ... no , it's 2009 and we could very well call this the bussiness year of "last man standing "
i think it's like the other poster noted , this is just a cash call here ... while managment might tell the share holders their just "thinking" about "possibly" selling more shares , the day after the vote goes through our company will throw down the extra 200 million shares and take the 600 million dollars .....
anyways , let's hope it passes , we need more wood for the fire ...
OP
USA320Pilot
Veteran
- May 18, 2003
- 8,175
- 1,539
- Thread Starter
- Thread starter
- #21
Freedom,
You might be right, but I think there is more value here than $600 million.
Regards,
USA320Pilot
You might be right, but I think there is more value here than $600 million.
Regards,
USA320Pilot
Dog Wonder
Veteran
More flame bait?
Wouldn't there be more value if these new shares are used in some sort of convertable corporate bond issue or ownership in exchange for assets (Airbuses)? Anyway you look at it, raising funds through the stock market is about the only way short term to generate financing because of the credit market shut down. At this point it's only authorization for 200 million more shares. But I'm not buying for one minute the "general corporate purposes" mumbo jumbo from Tempe.
Relevance? Within the past 12 months, GM has traded near $20 several times. Within the past two years, GM traded near $70 (as did USAir). Doesn't mean either will ever trade at $10 (or $70) again. How's that go? Oh, yes: Past Results Are Not Indicative of Future Results.
Excellent flame bait. Kudos to you.
Freighterguynow
Veteran
- Jan 5, 2004
- 1,276
- 1,207
United will have a bigger problem with the Nic than the East guys - that I can assure you.
OP
USA320Pilot
Veteran
- May 18, 2003
- 8,175
- 1,539
- Thread Starter
- Thread starter
- #27
According to a friend of mine who has served on many Boards and has been involved in M&A activity at the senior officer and board level the two biggest reasons companies have lare share offerings are general corporate purposes and acquistions. I believe dependent upon industry macroeconomic conditions stock could be sold to be used for general corporate purposes, PDP deposits, and a strategic acquisition where stock is used in lieu of cash to acquire another company.
Doug Parker has tried to acquire ATA, Delta, and United. And, with the help of the Seabury Group's John Luth and Bruce Lakefield put together a financing package that permitted US Airways and America West to merge.
Parker wants to merge again, Glenn Tilton believes in mergers and consolidation, Larry Kellner is against M&A activity and said Continental wants to remain independent and United's CFO recently said her company was and has been for sale.
Kathryn Mikells was recently interviewed by CNBC and she said, "It's been known for years that United is up for sale and new aircraft orders could impede a buyer."
And, "In the longer term after United and Continental complete their (alliance) antitrust review there will be “more opportunity (for US Airways) to work with Continental†and US Airways will become more “deeply embedded with United and it commits them to the domestic portion of the alliance,†US Airways Presdient Scott Kirby said in the April 28 Crew News employee meeting webcast. "It means it will have more opportunity for us†and “don’t believe everything you read (in the media),†Kirby noted.
In the future who knows what will happen to this cyclical industry. Credit markets are tight, but are now becoming available from the stimulus package, volatile oil prices, swine flu, or a shock event could keep demand depressed; however, at some point I believe the pricing environment will impove and capital will flow. At that point the share price will improve and then 200,000 shares could provide a lot of capital that couple be used to help fund a major transaction, which could be a strategic corporate transaction because of the history of US Airways' executive suite.
Regards,
USA320Pilot
Doug Parker has tried to acquire ATA, Delta, and United. And, with the help of the Seabury Group's John Luth and Bruce Lakefield put together a financing package that permitted US Airways and America West to merge.
Parker wants to merge again, Glenn Tilton believes in mergers and consolidation, Larry Kellner is against M&A activity and said Continental wants to remain independent and United's CFO recently said her company was and has been for sale.
Kathryn Mikells was recently interviewed by CNBC and she said, "It's been known for years that United is up for sale and new aircraft orders could impede a buyer."
And, "In the longer term after United and Continental complete their (alliance) antitrust review there will be “more opportunity (for US Airways) to work with Continental†and US Airways will become more “deeply embedded with United and it commits them to the domestic portion of the alliance,†US Airways Presdient Scott Kirby said in the April 28 Crew News employee meeting webcast. "It means it will have more opportunity for us†and “don’t believe everything you read (in the media),†Kirby noted.
In the future who knows what will happen to this cyclical industry. Credit markets are tight, but are now becoming available from the stimulus package, volatile oil prices, swine flu, or a shock event could keep demand depressed; however, at some point I believe the pricing environment will impove and capital will flow. At that point the share price will improve and then 200,000 shares could provide a lot of capital that couple be used to help fund a major transaction, which could be a strategic corporate transaction because of the history of US Airways' executive suite.
Regards,
USA320Pilot
freedom
Veteran
- Feb 15, 2006
- 3,244
- 274
i disagree
I think most major us airlines are going to fold at some point unless the government nationalizes them …
I’m sure our boys in the numbers department have the ratio for what our revenue will be VS an increasing unemployment rate …
aquagreen73s
Veteran
- Aug 22, 2005
- 1,979
- 1,877
That probably belongs in the labor thread, but since it's here I'll respond here.
You couldn't be more wrong. A UAL - AWA DOH merger with conditions and restrictions would work quite well but a UAL - AAA DOH would be a disaster for United. What's more, AAA got an absurd credit for their so-called "international flying," which was just a handful of tired old 767-200s and a few A330s. For that they got the top 517. UAL has what...75 747-400s and 777s? So if AAA got the top 517 with what they had at the merger, then UAL should get the top 2500 positions. I doubt any UAL pilot would object to that!
The problem is the AAA pilot group as it's a collection of pilots who held on to a bad investment for too long hoping for the miracle return, even if that miracle return is on the backs of the pilot group which is saving them. UAL is far beyond AAA in so many ways. The only way AAA can be merged into any seniority list is via ratios, and that is exactly what will happen again. Get used to it and get over it!
Poug Darker
Senior
- Jul 12, 2006
- 276
- 22
If the management of UAUA and LCC want to merge, there will be a merger. Merging seniority lists can be negotiated sucessfully with enough $$$ and encouragement from management (this time prior to signing the deal). The only impediment now is money. If Wall Street buys into the deal, then the deal is done.
Soon, both UAUA and LCC will be looking down the barrel of BK again due to the extreme competition that DAL and LUV are imposing. Economies of scale, administrative efficiencies, and synergistic opportunities are crucial to surviving in the future market environment. Simply said, LCC needs to be bigger to compete, and UAUA does, too. Neither can grow fast enough to compete with the other players. A merger makes good sense - and, the sooner, the better.
Soon, both UAUA and LCC will be looking down the barrel of BK again due to the extreme competition that DAL and LUV are imposing. Economies of scale, administrative efficiencies, and synergistic opportunities are crucial to surviving in the future market environment. Simply said, LCC needs to be bigger to compete, and UAUA does, too. Neither can grow fast enough to compete with the other players. A merger makes good sense - and, the sooner, the better.
