Originally Posted by
iahphx
This could get interesting. In case you haven't noticed, airline stock prices have almost halved since the TPG deal was announced (due to oil and economic worries). NW and TPG were already paying what looked like a huge premium. Now they would be several hundred million underwater if they close the deal. I wonder what the break-up fee is.
BTW, there's some precedent for airlines backing out of deals after the economics turned. UA essentially "gave up" on their bid for US a few years ago when it no longer looked like a smart deal.
I actually think AirTran if they won the bid for Midwest would be thinking about backing out right now too. Times are going to be tough for the airline industry. I bet the hedge funds that have a lot at stake in MEH stock are holding their breaths right now... LOL