Originally Posted by Herb687

Does the ALK board think they're competing with anyone else to buy HA? As near as I can tell, they're not. I don't disagree that an acquisition requires A premium. I disagree that the premium offered was at all reasonable. I think that the premium offered was totally irresponsible on the part of the ALK board and destroys value for ALK shareholders.

If HA really offers strategic benefit to AS, financial synergies, network benefit, "halo effect" (I once worked in finance for a major airline, I know a few of the tricks), yadda yadda yadda, then float a lower offer and see if it entices the sellers. If it doesn't, then counter once they reject. HA certainly doesn't benefit AS at any price. Don't open by paying an absolutely stupid premium.

From a network perspective, I kind of like the deal. From a financial perspective, I'd be furious were I an ALK long. And were I long Hawaiian I would have been laughing all the way to the bank and already sold my shares lest someone on the buying side come to their senses and realize just how bad the numbers are for the acquirer.