Posts with tag LCC
Posted May 30th 2008 10:15AM by Jon Ogg
Filed under: Deals
The
WSJ has confirmed that
UAL Corp. (NASDAQ:
UAUA) and
US Airways Group Inc. (NYSE:
LCC) have broken off merger talks. The CEOs of both companies have noted that they believe in consolidation, but $130 oil is making the companies look at other more attractive options.
Both companies have left the door open to mergers down the road, but for now talks are off.
What is perhaps most important here is the implication for the airline industry.
JetBlue Airways Corporation (NYSE:
JBLU) is also seeing shares under pressure since it
just raised $175 million in convertible notes.
Perhaps if the airlines want to look at deals, perhaps they should buy small oil drillers and producers to cut out all the middlemen. But that's not likely to happen.
We're all going to be facing significantly higher airline ticket prices and more individual charges that will feel like nickel and dime strategies.
Unfortunately in the world of airline mergers, 1+1=1.
Posted May 28th 2008 7:25AM by Douglas McIntyre
Filed under: Deals
Reports are that the heated merger talks between United (NASDAQ: UAUA) and US Air (NYSE: LCC) have hit a wall. Both airlines are probably still talking to AMR (NYSE: AMR), Continental (NYSE: CAL), and any puddle-jumper with a single-engine plane that they can find.
The airline industry got another dose of electric-shock therapy yesterday when JetBlue (NASDAQ: JBLU) said it would defer delivery on a number of new Airbus jets. Of course, if the airline doesn't make it, the delivery could be dodged altogether.
Managers at United and US Air have probably decided that thousand of hours talking about mergers will not save them. With oil at $130, putting together two airlines is not unlike lashing two drowning men to a leaky raft. Neither will be lonely, but both will still die.
Continued at 24/7 Wall St.
Posted Aug 22nd 2007 10:00AM by Paul Foster
Filed under: Management, Rumors, Engagements
Delta Airlines Inc. (NYSE: DAL) -- volatility at 54; DAL names former Northwest Airlines Corp. (NYSE: NWA) leader Richard Anderson as CEO, sparking merger talk. DAL closed at $17.71. Bear Stearns says, Anderson "could facilitate consolidation," and "complementary international routes and limited domestic overlap could make for a compelling case of DAL & NWA." Delta's unsecured creditors rejected a hostile takeover bid by US Airways (NYSE: LCC) on 1/31/07. DAL over all option implied volatility of 54 is above its 16-week average of 49 according to Track Data, suggesting larger price risk.
NYMEX Holdings Inc. (NYSE: NMX) -- volatility Up; NMX says it had talks regarding potential combination. NMX closed at $118.78. NMX says, "the company has talked to certain parities regarding a potential business combination." NMX goes on to say "that any transaction would have to be at a meaningful premium to the company's current share price." NMX over all option implied volatility of 52 is above its 26-week average of 37 according to Track Data, suggesting larger risk.
Daily M&A Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.
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