Jhooper From United States of America, joined Dec 2001, 6206 posts, RR: 12 Posted (6 years 3 months 2 weeks 2 days 8 hours ago) and read 3309 times:
Today I got a ballot in the mail asking me to vote on whether or not the DL / NWA merger should go forward. What was once $2500 of "new" Delta stock in my Fidelity account has dwindled away to less than half it's value. Looks like it's up to the shareholders now, so which vote supports the highest increase in my stock's value? While I know I hold a pretty modest amount of DL stock and I'd be far away from casting the deciding ballot, I'll base my vote on your input. So, fire away!
Last year 1,944 New Yorkers saw something and said something.
That depends how long term view you want to have, in the short term the merger will drive the stocks value up assuming its approved. In the long term the stocks value is going to be entirely dependant on how well the merger is executed and what the current market conditions are.
Personally I say vote no, DL can grow organically 80% of what they are acquiring from NW I think it's the safest way for the company to proceed going forward. If the merger with NW goes badly then its quite possible that DL just bet the farm and that could wipe out any of your stocks value.
Rest assured that if it's a no vote, Your stock will decline further. For those holding NWA, either the stock will decline with a no vote, or the number of shares will increase with a yes vote. IIRC, 1.00shares of NWA= 1.25shares of DAL