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Old Apr 21, 2019 | 1:08 pm
  #43  
PVDtoDEL
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Join Date: Oct 2010
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Originally Posted by channa
VX was profitable at the time of the acquisition. It was sold off because of the ridiculously high price over market that AS paid for it (some like a 47% premium over market value). AS literally paid about $1 billion more for VX than its market value. A financially unviable company does not generate that kind of premium.

Any company will sell for the right price. My house is not for sale. But offer me a million bucks over market value, and I'll be out by the end of the month.
VX was one fuel spike away from bankruptcy at the time of acquisition. There's a reason the investors were so anxious to sell.

It's not hard to make profits when fuel is cheap and the interest rate is low.
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