Originally Posted by
The Macker
Wow, there goes "We are owners and we care" tag line. Business like Onex are not long term owners, typically they will own it for less than 5 years. During their ownership, the focus is on increasing profit so they can resell the business for much higher price down the road. I guess the turmoil with all the changes (which in my opinion) have been poorly implemented. Oh well, I will watch the turmoil continue.
ONEX is not a strip and sell equity fund. They build businesses and work with line staff to improve companies. They have an exemplar track record in this regard and should only make WS a stronger and better company that through this expansion and refining period will insulate the company from dealing with short horizon shareholders. WS employees should be happy with the new owners as they've been getting shares over the years and now will get $31 a share when the deal closes. As well, ONEX has a pretty good rep with unions. When it bought Boeing's Wichita plant (now Spirit Aerosystems), it improved systems and had positive relations with the unions, something Boeing was unable to do. When it took the company public, staff were given shares and have done very well with the increased valuation. Same happened with staff when ONEX sold SkyChefs to LH. With the flight attendants just unionized, along with pilots, a new owner could sooth the waters.
As noted, ONEX was hoping to buy CP in 1999/2000 (with AA as a partner) but ultimately AC ended up doing the takeover and merging the two airlines. Rumours had it that ONEX wanted to purchase Aeroplan when ACE was considering either selling it outright, or spinning it off..