Who Will Own Who?

[jimntx]

It says AWA Stock will be converted to US Airways Stock.

[post="273260"][/post]​

However, it does not say that AWA stock will be converted to currentUS Airways stock. That would constitute securities fraud. AWA Class B stock closed today at $5.46/shr. To convert it to 0.4082 shares of uairq.ob which closed at 0.88/shr today would be "not kosher."

My guess is that they are going to get the BK court to declare the current stock null and void--as has been done in many bankruptcies--and then re-issue brand new stock to the new owners and investors. Anyone holding the current stock--including RSA or the UAIR employee pension groups--gets nothing, zip, nada.

For all practical purposes, two different companies with the same name. Almost like when a restaurant in an older "redeveloped" section of a city takes a name like Houston Buggy Whip Company after the business that occupied the same building a century ago. Only the name is the same.

 

[KCFlyer]

It's hardly worth the bandwith to respond to all the drivel being spilled by posters who are irrelevant to anything regarding the US/AW transaction.

[post="273370"][/post]​

NOt to be too picky, but I always thought that this was called the AW/US merger. Alphabetically and financially correct.

 

[Light Years]

NOt to be too picky, but I always thought that this was called the AW/US merger.  Alphabetically and financially correct.

[post="273386"][/post]​

Most people have been saying HP, which stands for America West Airlines. AW stands for Schreiner Airways of the Netherlands, who are not involved in the transaction.

Not to be too picky.

 

[BoeingBoy]

funguy,

There's this further along in the merger agreement:

Article I, section 1.6

(B) Surviving Corporation. The certificate of incorporation of Merger Sub in effect at the Effective Time shall be the certificate of incorporation of the Surviving Corporation (the “Surviving Corporation Charterâ€￾), until thereafter amended as provided therein or by applicable Laws; provided, however, that the Surviving Corporation Charter shall be amended immediately following the Effective Time to change the name of Merger Sub to America West Holdings Corporation.

Jim

 

[ClueByFour]

Lets see... How much money is HP spending to purchase those assets??????? This is a true merger . HP dint spend a whole lot of monies! The investors did!

[post="273369"][/post]​

Really? Because the investors "dint" give themselves the most percentage of stock!

That would be the 45% owned by the current shareholders of HP.

 

[KCFlyer]

Most people have been saying HP, which stands for America West Airlines. AW stands for Schreiner Airways of the Netherlands, who are not involved in the transaction.

Not to be too picky.

[post="273389"][/post]​

H still comes before U.

 

[N924PS]

H still comes before U.

[post="273413"][/post]​

And F comes before U and CK comes after it for you!

 

[KCFlyer]

And F comes before U and CK comes after it for you!

[post="273416"][/post]​

I think a lot of these 20 year US employees who are breathing a sigh of relief, knowing that their date of hire is earlier than AWA existed are going to find out just what that definition means when the HP employees fidn that THEY are the ones to be displaced. It won't be pretty. And for the record....HP really IS the one who is attracting the investment community, however poorly guided they might be.

 

[nycbusdriver]

Kiss those beyond perimeter 5 RTs out of DCA goodbye, those should be going back in the pool and the DOT will have to figure out who they should go to, again.

[post="273191"][/post]​

Why would that be? If you add up the beyond perimeter slots owned by HP and those owned by US, you still get 5. Hardly a windfall for a merged carrier 3 times the original size of HP by itself.

 

[Cosmo]

Why would that be? If you add up the beyond perimeter slots owned by HP and those owned by US, you still get 5. Hardly a windfall for a merged carrier 3 times the original size of HP by itself.

Actually, America West holds DCA slot exemptions for four round trips -- three to PHX and one to LAS -- while US Airways has none. And AFAIK, the destinations of these flights cannot be changed without DOT permission.

It will be interesting to see how DOT treats these slot exemptions after the merger. Remember, prior to their "merger", American and TWA combined had only one slot exemption (for a nonstop DCA-LAX flight by TWA), which DOT rescinded and IIRC later awarded to Alaska for nonstop DCA-SEA service.