lockmat Posted December 13, 2006 Share Posted December 13, 2006 So far it's just speculation but rumors have been swirling for a whilehttp://www.chron.com/disp/story.mpl/front/4398040.htmlWhat will this look like if it plays out? Quote Link to comment Share on other sites More sharing options...
editor Posted December 13, 2006 Share Posted December 13, 2006 Looks like it may be moving forward:UAL, Continental reportedly in talks; AirTran bids for MidwestBy BRAD FOSSAP Business WriterPublished December 13, 2006, 5:46 AM CSTA flurry of confirmed and reported talks among airlines may signal merger mania within the struggling industry, though analysts question whether consolidation is a sure -- or even a good -- thing. UAL Corp.'s United Airlines and Continental Airlines Inc. are exploring a possible combination, according to published reports late Tuesday. On Wednesday, AirTran Holdings Inc. said it has made a $290 million stock and cash bid for Midwest Air Group Inc., valuing the smaller airline at $11.25 per share, a 24 percent premium to its closing stock price Tuesday on the American Stock Exchange.http://www.chicagotribune.com/news/local/w...1,7100224.storyLast night some people at the Trib were talking like it's a done deal. But this morning all I can find on their web site is an AP article. I know they wrote one themselves. I wonder if they pulled back for some reason. Quote Link to comment Share on other sites More sharing options...
citykid09 Posted December 13, 2006 Share Posted December 13, 2006 Looks like it may be moving forward:http://www.chicagotribune.com/news/local/w...1,7100224.storyLast night some people at the Trib were talking like it's a done deal. But this morning all I can find on their web site is an AP article. I know they wrote one themselves. I wonder if they pulled back for some reason.Where would the headquarters be Houston or Chicago? Quote Link to comment Share on other sites More sharing options...
TJones Posted December 13, 2006 Share Posted December 13, 2006 (edited) I have heard from 3 economists that this could be bad for both companies. If anyone has stock in either you may want to consider selling. Edited December 13, 2006 by TJones Quote Link to comment Share on other sites More sharing options...
TheNiche Posted December 13, 2006 Share Posted December 13, 2006 Where would the headquarters be Houston or Chicago?I'm not yet confident that this is going forward, but it seems as though Continental would have to be the buyer. That would suggest that Houston is in a safer position, but that's not necessarily true. Quote Link to comment Share on other sites More sharing options...
lockmat Posted December 13, 2006 Author Share Posted December 13, 2006 I have heard from 3 economists that this could be bad for both companies. If anyone has stock in either you may want to consider selling.Of course they're gonna say whatever they want, but they 'say' part of the reason is for the best interest in the holders. Quote Link to comment Share on other sites More sharing options...
ssullivan Posted December 13, 2006 Share Posted December 13, 2006 I am very against this, but I also don't think it's anywhere close to a done deal. A possible Continental-United merger has been a rumor in the frequent business travel community for years now, and has been something that has been generally looked upon very negatively by frequent travelers from both airlines. I believer the meetings the two airlines have had regarding a possible merger have been more of a reaction to US Airways' ridiculous proposal to acquire Delta. There's almost no way Continental and United are going to commit to a merger unless they are forced to by two major competitors agreeing to merge. In the end, I think both would rather remain independent, but they are willing to merge if they feel they have to based on what the competition is doing. Quote Link to comment Share on other sites More sharing options...
citykid09 Posted December 13, 2006 Share Posted December 13, 2006 I am very against this, but I also don't think it's anywhere close to a done deal. A possible Continental-United merger has been a rumor in the frequent business travel community for years now, and has been something that has been generally looked upon very negatively by frequent travelers from both airlines. I believer the meetings the two airlines have had regarding a possible merger have been more of a reaction to US Airways' ridiculous proposal to acquire Delta. There's almost no way Continental and United are going to commit to a merger unless they are forced to by two major competitors agreeing to merge. In the end, I think both would rather remain independent, but they are willing to merge if they feel they have to based on what the competition is doing.I am against a merger also, but if it has to happen I hop Houston is the city that gets the headquarters and I also hope that it benifits Houston not hurt it. Quote Link to comment Share on other sites More sharing options...
Subdude Posted December 14, 2006 Share Posted December 14, 2006 United is larger, but Northwest can block the deal if Continental is not listed as the buyer. So it could be structured as a Continental purchase of United, with United retaining a majority of management slots. Any merger will take a long time to negotiate and will require some governmental and union approvals. The union negotiations will be especially dicey. Quote Link to comment Share on other sites More sharing options...
Houston1stWordOnTheMoon Posted December 18, 2006 Share Posted December 18, 2006 United is larger, but Northwest can block the deal if Continental is not listed as the buyer. So it could be structured as a Continental purchase of United, with United retaining a majority of management slots. Any merger will take a long time to negotiate and will require some governmental and union approvals. The union negotiations will be especially dicey.You are correect. If Continental is showed, atleast on paper to be the buyer, that nixes the Northwest Airlines death pill. Its not impossible and could very well happen. This deal is ,IMO, no where near being a "done deal". I remember the "done deal" talk back in 2000 when United was trying to buy US Airways and it ended up not happening. A Continental/United marriage would be MOST beneficial for me! I have a billion miles and king status in the Star Alliance! Hopefully the headquarters will remain here if they do go to the alter. This marriage would make more sense unlike the bizarre proposed union between US Airways and Delta. Quote Link to comment Share on other sites More sharing options...
Houstonian in Iraq Posted December 18, 2006 Share Posted December 18, 2006 Thanks for the update guys. Been trying to keep up with this off and on. My brother works for Continental so I hope he doesn't lose out IF this deal goes through Quote Link to comment Share on other sites More sharing options...
Houston1stWordOnTheMoon Posted December 19, 2006 Share Posted December 19, 2006 Thanks for the update guys. Been trying to keep up with this off and on. My brother works for Continental so I hope he doesn't lose out IF this deal goes through Oh no, an airline employee! Tell him to run and run fast to a different line of work, j/k You should keep us informed with info from him since he is "on the inside". The standard response i have been getting from Continental is that "Continental is weighing its options to ensure the best for Continental customers and employees". If any news comes along, i will post it. Quote Link to comment Share on other sites More sharing options...
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