Offer to buy TWA for $381 million in stock, debt securities & cash
Jun 21, 2000, 8:15 am
#1
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Offer to buy TWA for $381 million in stock, debt securities & cash
Global Airlines Corp, a company without operations led by LA investor Emil Bernard, said it offered to buy TWA for USD$381 million in stock, debt securities and cash.
The offer is for US$5 a share, based on 76.1 million shares outstanding and other securities that are the equivalent of stock, according to a company filing for the quarter ended 3/31.
Global made this bid via fax last Friday to TWA chairman and chief executive William Compton and may make the offer directly to TWA shareholders if the airline does not respond, Global Airlines spokesman John Scott was reported by Bloomberg as saying.
TWA did not respond to a USD$5-a-share cash bid from Global Airlines in January, Mr Scott said.
St Louis-based TWA has posted only annual losses since 1989. TWA spokeswoman Julia Bishop-Cross declined to comment on the proposal, saying only that the airline talks to many companies about a variety of business transactions.
Global Airlines does not trade on any exchanges but has plans to list on the American Stock Exchange. Mr Bernard drew publicity in 1978 when he led a failed USD$11 million effort to buy the San Francisco Giants professional football team and move it to Washington, DC.
The press release outlining the proposal said TWA shareholders would receive USD$2 a share in Global Airlines stock, USD$2 a share in the form of a 5-year convertible preferred bond, and USD$1 cash. The number of shares outstanding would then be reduced by a 50 to 1 reverse stock split.
The offer is for US$5 a share, based on 76.1 million shares outstanding and other securities that are the equivalent of stock, according to a company filing for the quarter ended 3/31.
Global made this bid via fax last Friday to TWA chairman and chief executive William Compton and may make the offer directly to TWA shareholders if the airline does not respond, Global Airlines spokesman John Scott was reported by Bloomberg as saying.
TWA did not respond to a USD$5-a-share cash bid from Global Airlines in January, Mr Scott said.
St Louis-based TWA has posted only annual losses since 1989. TWA spokeswoman Julia Bishop-Cross declined to comment on the proposal, saying only that the airline talks to many companies about a variety of business transactions.
Global Airlines does not trade on any exchanges but has plans to list on the American Stock Exchange. Mr Bernard drew publicity in 1978 when he led a failed USD$11 million effort to buy the San Francisco Giants professional football team and move it to Washington, DC.
The press release outlining the proposal said TWA shareholders would receive USD$2 a share in Global Airlines stock, USD$2 a share in the form of a 5-year convertible preferred bond, and USD$1 cash. The number of shares outstanding would then be reduced by a 50 to 1 reverse stock split.
Jun 21, 2000, 9:36 am
#2
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This was in yesterday morning's paper. However, the stock is still stuck at 2 11/16, so the market is not taking this offer seriously.
Jun 21, 2000, 10:48 am
#3
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I was gonna buy TWA, But mommy wouldn't give me an advance on my allowance.
Jun 21, 2000, 8:49 pm
#4
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Freakflyer- FYI, FWIW, it had already risen on speculation regarding the earlier AirTran offer. http://www.flyertalk.com/forum/wink.gif
Under the proposed plan, TWA would operate as a wholly owned subsidiary and New York-based Global would retain TWA employees. The current TWA board of directors and chairman and chief executive would resign, Scott said.
Scott said Global expects to obtain approval for the plan from the Department of Transportation and the Federal Aviation Administration within 30 to 90 days after it files with the Securities and Exchange Commission. He said Global would file with the SEC by the end of the month or as soon as a deal is agreed upon.
http://www.nytimes.com/reuters/busin...lines-twa.html
The offer expires on June 25, but Global reserves the right to extend the offer, he said adding there is a $100 million breakup fee.
Scott said Global will go directly to TWA shareholders with a tender offer if the board fails to respond to the offer or rejects the offe
Under the proposed plan, TWA would operate as a wholly owned subsidiary and New York-based Global would retain TWA employees. The current TWA board of directors and chairman and chief executive would resign, Scott said.
Scott said Global expects to obtain approval for the plan from the Department of Transportation and the Federal Aviation Administration within 30 to 90 days after it files with the Securities and Exchange Commission. He said Global would file with the SEC by the end of the month or as soon as a deal is agreed upon.
http://www.nytimes.com/reuters/busin...lines-twa.html
The offer expires on June 25, but Global reserves the right to extend the offer, he said adding there is a $100 million breakup fee.
Scott said Global will go directly to TWA shareholders with a tender offer if the board fails to respond to the offer or rejects the offe
Jun 22, 2000, 4:34 pm
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Sure wish Herb over at Southwest would jump in and trump ATA. Not too excited about my prospects of having to use my Aviators miles on a "renamed because of a bad crash" ValueJet.
Jun 28, 2000, 7:36 am
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Global Airlines Corp, a privately held company with no flight operations, said this week that it has extended to 7/6/00 its US$5 a share offer to acquire TWA. The offer had expired on Sunday. Under terms of the offer, which was submitted in mid-June, Global will pay US$2 in Global Airline stock, registered and traded on the American Stock Exchange, plus US$2 in 5-year convertible bonds and US$1 in cash for each TWA share.
A notice of the extension of the offer by Global, a company controlled by Los Angeles investor Emil Bernard, was faxed to TWA chief executive Bill Compton on Monday.
A TWA spokesperson was not immediately available to comment on the extension. A spokeswoman said earlier this month: "TWA, like all airlines, engages in conversations about different kinds of business transactions with other airlines and other companies from time to time. We don't discuss such conversations until there is some sort of result and we certainly don't like to negotiate these things in the media."
Under the proposed plan, TWA would operate as a wholly owned subsidiary, and New York-based Global would retain TWA employees. The current TWA board of directors and chairman and chief executive would resign.
Global also said it has filed documents relating to the offer with both DOT & FAA.
A notice of the extension of the offer by Global, a company controlled by Los Angeles investor Emil Bernard, was faxed to TWA chief executive Bill Compton on Monday.
A TWA spokesperson was not immediately available to comment on the extension. A spokeswoman said earlier this month: "TWA, like all airlines, engages in conversations about different kinds of business transactions with other airlines and other companies from time to time. We don't discuss such conversations until there is some sort of result and we certainly don't like to negotiate these things in the media."
Under the proposed plan, TWA would operate as a wholly owned subsidiary, and New York-based Global would retain TWA employees. The current TWA board of directors and chairman and chief executive would resign.
Global also said it has filed documents relating to the offer with both DOT & FAA.
Jun 28, 2000, 8:58 pm
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The market still isn't buying into the offer - TWA closed at 2 9/16 today.
Jun 29, 2000, 9:04 am
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Actually, freakflyer, the price would likely be at 2 or lower without the pending offer, IMHO! Typically, however, company stock prices trade several points below the offering price even after it's a done deal!
http://host.cnbc.com/jetson/Chart.html?Symbol=TWA
BTW- I by no means mean to imply that this is a good deal or that it will happen! http://www.flyertalk.com/forum/smile.gif
http://host.cnbc.com/jetson/Chart.html?Symbol=TWA
BTW- I by no means mean to imply that this is a good deal or that it will happen! http://www.flyertalk.com/forum/smile.gif
Jun 30, 2000, 2:41 am
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Actually, doc, TWA's been above 2 for the last few weeks, experiencing a runup more or less a bit after the UA-US merger announcement. I'd love to buy in once it gets down a bit. The airlines are going to clean up this and next quarter, and for TW that means actually being profitable for once (well, for 3rd quarter anyway).
Jun 30, 2000, 4:58 am
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Keep in mind that TWA, the nation's 8th-largest airline, hasn't had an annual profit in more than a decade. It has twice reorganized under Chapter 11 of the federal bankruptcy code.
AirTran has now backed off from its talks regarding attempted acquisition.
http://www.flyertalk.com/forum/Forum...ML/000022.html
http://www.flyertalk.com/forum/Forum49/HTML/000170.html
AirTran has now backed off from its talks regarding attempted acquisition.
http://www.flyertalk.com/forum/Forum...ML/000022.html
http://www.flyertalk.com/forum/Forum49/HTML/000170.html
Jul 6, 2000, 7:23 am
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TWA asked Global to contact its investment banker regarding Global's buyout offer. TWA Chief Executive Bill Compton faxed a response to Global's $5 a share offer 6/30, Global spokesman John Scott told Reuters. In the response, Compton also had asked for a better understanding of Global's operating plan & for details of its cash dividend and convertible preferred bond financing.
Scott said Global plans to contact TWA's investment banker a& will try to set up meetings with Compton, TWA's pilots and its board of directors. In addition, Scott said Global will seek names % addresses of TWA's shareholders.
Global, controlled by Los Angeles investor Emil Bernard, had extended the offer to 7/6. Under terms of the offer, Global will pay $2 in Global stock, registered and traded on the American Stock Exchange, plus $2 in 5yr convertible bonds and $1 in cash for each TWA share.
A TWA spokesperson was not immediately available to comment on this development.
Under the proposed plan, TWA would operate as a wholly owned subsidiary and NY-based Global would retain TWA employees. The current TWA board of directors and chairman and CEO would resign.
Last month, Global had said it had filed documents relating to the offer with both the US DOT & FAA.
Shares of TWA were essentially unchanged at about 23/8.
Scott said Global plans to contact TWA's investment banker a& will try to set up meetings with Compton, TWA's pilots and its board of directors. In addition, Scott said Global will seek names % addresses of TWA's shareholders.
Global, controlled by Los Angeles investor Emil Bernard, had extended the offer to 7/6. Under terms of the offer, Global will pay $2 in Global stock, registered and traded on the American Stock Exchange, plus $2 in 5yr convertible bonds and $1 in cash for each TWA share.
A TWA spokesperson was not immediately available to comment on this development.
Under the proposed plan, TWA would operate as a wholly owned subsidiary and NY-based Global would retain TWA employees. The current TWA board of directors and chairman and CEO would resign.
Last month, Global had said it had filed documents relating to the offer with both the US DOT & FAA.
Shares of TWA were essentially unchanged at about 23/8.
Nov 7, 2000, 9:28 am
#12
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Global has again offered to buy TWA! http://www.flyertalk.com/forum/eek.gif
Global has offered TWA shareholders an option to swap TWA shares for Global's, which are expected to begin trading under the symbol GAC on the American Stock Exchange. Otherwise, they can switch TWA stock for $2.25 in Global nonvoting class B stock and $1.650 a share in cash.
http://www2.marketwatch.com/news/yho...9834E27FC79%7D
[This message has been edited by doc (edited 11-07-2000).]
Global has offered TWA shareholders an option to swap TWA shares for Global's, which are expected to begin trading under the symbol GAC on the American Stock Exchange. Otherwise, they can switch TWA stock for $2.25 in Global nonvoting class B stock and $1.650 a share in cash.
http://www2.marketwatch.com/news/yho...9834E27FC79%7D
[This message has been edited by doc (edited 11-07-2000).]
Jan 8, 2001, 5:16 am
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American Airlines is negotiating a complex transaction in which it would acquire Trans World Airlines and buy a separate stake in US Airways, executives close to the talks said.
http://www.flyertalk.com/forum/Forum...ML/001495.html
http://www.flyertalk.com/forum/Forum...ML/001495.html
Jan 10, 2001, 11:06 pm
#14
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While top executives from the AMR Corporation, the parent of American, and Trans World Airlines held a news conference at the T.W.A. headquarters in downtown St. Louis this morning, scores of T.W.A.'s 8,900 local employees gathered in knots at the airport to talk about what joining the American team would mean. Many liked what they heard. Several ground employees said they were told that their salaries could rise as much as $4.50 an hour, because of higher pay scales at American.
http://www.nytimes.com/2001/01/11/business/11LOUI.html
http://www.nytimes.com/2001/01/11/business/11LOUI.html
Feb 7, 2001, 5:28 pm
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An experienced group of aviation experts and major investors have formed a new company called Jet Acquisitions Group Inc. and today announced their intention to bid nearly $1 billion for Trans World Airlines to preserve it as an independent airline.
http://biz.yahoo.com/bw/010207/az_jet_acq.html
http://biz.yahoo.com/bw/010207/az_jet_acq.html