America West to buy U.S. Airways (http://news.yahoo.com/news?tmpl=story&u=/nm/20050520/ts_nm/airlines_merger_dc_18)
WASHINGTON (Reuters) - America West Holdings Corp. (NYSE:AWA - news) and a group of investors would buy bankrupt US Airways Group Inc (OTC BB:UAIAQ.OB - news) in a bid to compete with low-cost rivals under a merger plan announced on Thursday.
SPN Lifer
May 20, 05, 7:57 am
America West to buy U.S. Airways (http://news.yahoo.com/news?tmpl=story&u=/nm/20050520/ts_nm/airlines_merger_dc_18)
WASHINGTON (Reuters) - America West Holdings Corp. (NYSE:AWA - news) and a group of investors would buy bankrupt US Airways Group Inc (OTC BB:UAIAQ.OB - news) in a bid to compete with low-cost rivals under a merger plan announced on Thursday.
:)
NeoOfTheCRS
May 20, 05, 8:00 am
Considering that nearly all of the money to fund this is coming from sources outside of HP and US, it sounds like a merger to me. This headline is just shoddy reporting.
TomBascom
May 20, 05, 8:01 am
I once sold my little tiny company to a really, really big company.
Legally the deal was structured as a merger. The lawyers had some reasons for that. But there was never any question of who was in charge afterwards.
RICflyer
May 20, 05, 8:06 am
I agree with NeoOfTheCRS, with most of the funding coming from outside the two airlines it is a merger, or maybe better said both HP & US are being bought and then merged.
jaguar
May 20, 05, 8:20 am
Whatever it really is I'm excited about it and will give them a try.
RICflyer
May 20, 05, 8:22 am
Whatever it really is I'm excited about it and will give them a try.
We welcome you Jaguar!!! I think this is a great start to a new future for US & HP!!!!
bigred93
May 20, 05, 8:27 am
America West to buy U.S. Airways (http://news.yahoo.com/news?tmpl=story&u=/nm/20050520/ts_nm/airlines_merger_dc_18)
WASHINGTON (Reuters) - America West Holdings Corp. (NYSE:AWA - news) and a group of investors would buy bankrupt US Airways Group Inc (OTC BB:UAIAQ.OB - news) in a bid to compete with low-cost rivals under a merger plan announced on Thursday.
And thank God for that. If it were really a merger, they might actually think about having to have slots for members of US management in the combined team. And we wouldn't want that to happen!!!
longing4piedmont
May 20, 05, 8:42 am
Tried to go back and put a question mark in the title, but as we all know that can't be done. The post was not meant to be a commentary, just a post.
But if you listened to either of the web cast from yesterday, I don't think there is any doubt who is driving and who is riding
longing4piedmont
May 20, 05, 9:14 am
Considering that nearly all of the money to fund this is coming from sources outside of HP and US, it sounds like a merger to me. This headline is just shoddy reporting.
maybe, then again maybe not......
America West would own 45 percent of the new airline, new equity partners would own 41 percent and 14 percent would go to US Airways, assuming a total private equity value of $850 million, the carriers said. That valuation implied a value of $6.12 a share for Americas West's stock, they said.
us2
May 20, 05, 9:39 am
Where's deelmakur when you need him?
Looking at the structure here, it would appear to be a merger of US with America West with a concurrent equity investment in the combined entity by outside investors. The structure here is actually quite interesting, since HP did not acquire a controlling interest, just a 45% share that is likely to be diluted if subsequent equity investors are sought out. In any case, the end result is that HP management will be in charge rather than the gang that can't shoot straight in CCY.
Frankly, I find the whole thing quite amazing. I was wondering whether US would survive the year and here they are, sitting in a pretty decent position with a decent amount of cash and off the endangered species list. More importantly, I am no longer feeling the need to burn off miles. :)
EWC-JMU
May 20, 05, 11:03 am
I once sold my little tiny company to a really, really big company.
Legally the deal was structured as a merger. The lawyers had some reasons for that. But there was never any question of who was in charge afterwards.
Amen, Tom. The "reasons" you mention were tax reasons, most likely. A part of the Code that was put in for a particular reason, but which with the passage of time has allowed for completely unintended results. However, IMO, these results have had a hugely positive effect.