Gamecock

I am not in the corporate world, but doesn't a hostile takeover mean that the target doesn't want to be taken over?

elechrisity

My assumption is that this statement from Hutchinson is what is being referenced above, but please keep in mind her representative body :P.

"I've seen the public reports about hostile takeovers involving American Airlines, including another airline that is communicating directly with American's creditors and unions.
"I'm concerned about the potential disruptive effects of such efforts during the ongoing bankruptcy proceedings, and ask that all airlines give American and the committee of creditors an opportunity to complete the bankruptcy reorganization process.
"Completing this essential step is in the best interests of American's employees, creditors, and the communities served by American Airlines. Any merger discussions can occur when the bankruptcy court has cleared the process by which American can emerge from court supervision.""

Taken from:
http://aviationblog.dallasnews.com/a...-american.html

Microwave

Generally, a hostile takeover is when the buyer attempts to pitch an offer directly to shareholders as opposed to a willing board and/or management. In most such situations, the board rejects an offer, or makes public that it is not entertaining any offers, so the hostile buyer may be going in with less foreknowledge than in a more cooperative process, and may in fact end up in a proxy battle to try to oust the existing management or board.

In any case, a target company (AMR?) that has publicly pooh-poohed acquisition by a particular buyer (US Airways?) may easily find itself in a hostile situation where that acquirer attempts to circumvent the uncooperative target's leadership. I have zero idea what the effect of bankruptcy is on the process, however--though any such change by a firm currently in chapter 11 reorganisation would require approval of the bankruptcy court.

TWA884

She has no regulatory authority, nor does the Senate as a whole; besides, she is a lame duck.

austin_modern

She's just stumping for Rick's job with her AMR comments.

elechrisity

Agreed, completely. Just saying, her husband (bond attorney) was and is heavily involved in DFW airport, so I'm betting she has more than a constituent based-interest (read: personal) in keeping American independent.

tom911

Here's what I was looking for, from an article just three weeks ago:

http://news.airwise.com/story/view/1332379473.html

If this information is true, how can another carrier take over AA until after September?

FWAAA

The court order contains some language that permits the unsecured creditors committee to petition the court to shorten the (now extended) period of exclusivity. If the UCC petitions to shorten the exclusivity period, the burden is on AA management if it resists shortening the exclusivity period. On another site, a flight attendant argued strenuously (but incorrectly) that the language permits the UCC to negotiate and accept competing bids now.

AAExPlat

Posted this morning by a less than credible poster on a.net:



From a source with American Airlines:

RECEIVED THIS MORNING FROM A JFK PILOT
(he also gave me permission to post it) It may not have been announced Tuesday but I think this is going to happen. No information on how this would effect flight attendants.

USAirways has signed agreements with all three AA unions and the support of the PBGC in a bid to execute a "hostile in BK" merger with American. It is possible, even likely, that US has the support of enough of the other members of the committee to get a majority vote.

US's plan includes a loss of control by AA's management team. On the pilot side the agreement? Onhe pilot side the agreement includes a 5.5% pay raise upon date of signing, with 4 annual 3% raises over a 5 year term. In 2018 the pay rates will adjust to the average of DAL and UAL rates or our own rates , whichever is higher. The EMB-190 CA rate will top out at 136 per in 2017 and these airplanes will be flown at mainline. I have no further confirmed details other than AA management and Horton plan to fight this in court and that the union agreements in principle do include concessions such as elimination of the A-fund, preferential bidding, and more hours flown per month.

Link here: http://www.airliners.net/aviation-fo....main/5434044/

Huge news if true.

envgeo

I heard it on KRLD in dallas this morning, i have no idea what this means for AA fliers/elite passangers.

AAExPlat

Initially nothing. Longer term it all depends on the choices the combined entity makes...OW or Star, AA service levels or US service levels, massive devaluations or not?

Clipper110A

Well it BETTER not mean drinks in F in plastic cups... LOL

Seriously, interesting development if true, but even if true difficult to predict how it will play out.

brp

More importantly,what happens to the AA forum

Cheers.

AAExPlat

I have said for a long time now that the merger is inevitable, but a "in bk hostile takeover" makes us AA elites very vulnerable since in theory the entire program could be dumped....

ByrdluvsAWACO

Don't laugh!

While I think Dixie Cup Doug has gotten over his passion for plastic, I wouldn't put it past that hole to start jerking around with AAdvantage.