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Thread: A possible but what I believe is an unlikely merger with AA?
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Old Jul 11, 2012 | 10:15 pm
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Originally Posted by radarskiy
AA has $5 billion cash in hand and rising. AS market cap is $2.6 billion.

AA would have to ask the BK judge before a buy, but at least theoretically they wouldn't have to ask AS.

Of that $5 billion, how much of that is unencumbered cash? Very little I would imagine. Most of that "cash on hand" is likely assets which won't pay for another airline. AA won't be in the driving seat of any merger and it's extremely unlikely they'll be the acquirer in any transaction. I also imagine that it would take a lot more than the 2.6 billion that is ALK's market cap to convince investors to sell out to them in the sorry shape their in.
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