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AS Rejects HP Merger Rumors In SEC Filing  
User currently offlineAvek00 From United States of America, joined Oct 2004, 4282 posts, RR: 20
Posted (8 years 10 months 2 weeks 6 days 5 hours ago) and read 3250 times:

"ITEM 7.01. Regulation FD Disclosure.

Recent news reports have stated that Alaska Air Group, Inc. (“Alaska”) is considering making a significant investment in America West Airlines. While it is Alaska’s normal practice not to comment on rumors such as this, the amount of change currently underway within our industry and at Alaska, as well as the extensive national media coverage repeating this rumor, have the potential of creating uncertainty among our employees. We have no current plans to become involved in a transaction with America West or US Airways and have not spoken with the investor mentioned in the original news story reporting this rumor.

The statements made herein speak only as of today. We disclaim any obligation to update or revise these statements after the date of this report in the event of changes in our plans or circumstances. "

I wouldn't be surprised if the SEC begins at least an informal inquiry into possible securities fraud against the "investor" who made the claim about AS being involved in HP merger talks...


Live life to the fullest.
22 replies: All unread, jump to last
 
User currently offlineSquirrel83 From , joined Dec 1969, posts, RR:
Reply 1, posted (8 years 10 months 2 weeks 6 days 5 hours ago) and read 3231 times:

Yehhh Proof that it is not REAL

AND THE TRUTH MAY SET YOU FREE!!!!


Thanx for the info

Cheers~


User currently offlineMidway2AirTran From United States of America, joined Jul 2003, 864 posts, RR: 2
Reply 2, posted (8 years 10 months 2 weeks 6 days 1 hour ago) and read 2996 times:

Well dam'n! I was initially getting ready to start-up my Ramp Worker contracting business based in PHX when I heard that one!

I bet the SEC will react if the source is found, considering it apparently had effects on the market.



"Life is short, but your delay in ATL is not."
User currently offlineMidex461 From United States of America, joined Feb 2000, 282 posts, RR: 1
Reply 3, posted (8 years 10 months 2 weeks 6 days 1 hour ago) and read 2984 times:

From the other end of things, here's the HP statement on the employee site.

BIDDING RUMORS BEGIN!
Citing "someone close to the industry," media reports are swirling with news of an Alaska Airlines buy-out of America West. With 600 million-or-so passengers traveling in the U.S. every year, any one of those could be considered "close to the industry."

Not to make light of this, but these types of stories are to be expected. And our response to any questions like this must be that we do not comment. Employees should know that over the next 45 days or longer, there will be many rumors in the marketplace about this proposed merger. Some will involve airlines wanting to buy US Airways' assets or US Airways, or even America West. We just have to take the high road, get out our "no comment" recordings and keep running a great airline.

Alaska Airlines has filed an 8K with the SEC denying this rumor. "We have no current plans to become involved in a transaction with America West or US Airways and have not spoken with the investor mentioned in the original news story reporting this rumor." Click here to view the complete Alaska Air 8K Filing.



Opinions and views expressed are MINE and do NOT represent the views of US Airways
User currently offlineQxq400 From United States of America, joined Dec 2004, 255 posts, RR: 2
Reply 4, posted (8 years 10 months 2 weeks 5 days 17 hours ago) and read 2875 times:

HOT DAMN!!!!!!!
This is the best news I have heard all day.  bigthumbsup 



Welcome baby Madison Renee
User currently offlineN77014 From , joined Dec 1969, posts, RR:
Reply 5, posted (8 years 10 months 2 weeks 5 days 7 hours ago) and read 2688 times:

And how would AS finance this?

User currently offlineMariner From New Zealand, joined Nov 2001, 24635 posts, RR: 86
Reply 6, posted (8 years 10 months 2 weeks 5 days 7 hours ago) and read 2673 times:
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Quoting N77014 (Reply 5):
And how would AS finance this?

Alaska is one of the richest US airlines, after SWA and, maybe, JetBlue.

They have close to a billion bucks in unrestricted cash, and their share price is the highest of an US airline, higher than JetBlue, higher than SWA.

They can buy/finance pretty much anything they want.

cheers

mariner



aeternum nauta
User currently offlineN77014 From , joined Dec 1969, posts, RR:
Reply 7, posted (8 years 10 months 2 weeks 5 days 7 hours ago) and read 2671 times:

[quote=Mariner,reply=6]Quoting N77014 (Reply 5):
And how would AS finance this?

Alaska is one of the richest US airlines, after SWA and, maybe, JetBlue.

They have close to a billion bucks in unrestricted cash, and their share price is the highest of an US airline, higher than JetBlue, higher than SWA.

They can buy/finance pretty much anything they want.

cheers

mariner


But that does not stop them from crying poor when they show ground handlers the door in SEA.

Nevertheless, AS would be wise to consider all options out there to secure their position in the market.


User currently offlineMariner From New Zealand, joined Nov 2001, 24635 posts, RR: 86
Reply 8, posted (8 years 10 months 2 weeks 5 days 7 hours ago) and read 2650 times:
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Quoting N77014 (Reply 7):
But that does not stop them from crying poor when they show ground handlers the door in SEA.

That is absolutely correct. I said they are rich. I did not say they are moral.

And yes, I agree, they do need to consider their options.

cheers

mariner



aeternum nauta
User currently offlineASFlyer From United States of America, joined May 2005, 1044 posts, RR: 2
Reply 9, posted (8 years 10 months 2 weeks 5 days 6 hours ago) and read 2613 times:

Quoting N77014 (Reply 7):
But that does not stop them from crying poor when they show ground handlers the door in SEA

Should they wait until they are in the hole a billion bucks before they start cutting their costs to keep themselves in line with the competition?


User currently offlineN77014 From , joined Dec 1969, posts, RR:
Reply 10, posted (8 years 10 months 2 weeks 5 days 6 hours ago) and read 2599 times:

Quoting ASFlyer (Reply 9):
Quoting N77014 (Reply 7):
But that does not stop them from crying poor when they show ground handlers the door in SEA

Should they wait until they are in the hole a billion bucks before they start cutting their costs to keep themselves in line with the competition?

Of course not. But cutting human capital is the asset that comes with its own liabilities when stepped on.


User currently offlineQxq400 From United States of America, joined Dec 2004, 255 posts, RR: 2
Reply 11, posted (8 years 10 months 2 weeks 5 days 6 hours ago) and read 2587 times:

Quoting N77014 (Reply 10):
But cutting human capital is the asset that comes with its own liabilities when stepped on

AS gave there former rampers a choice. They choose to reject AS final position and AS choose to outsource there jobs.

The real criminals is the union that put that stupid clause in there CURRENT contract. WHAT A BUNCH OF MORONS!



Welcome baby Madison Renee
User currently offlineASFlyer From United States of America, joined May 2005, 1044 posts, RR: 2
Reply 12, posted (8 years 10 months 2 weeks 5 days 4 hours ago) and read 2446 times:

Quoting N77014 (Reply 10):
Of course not. But cutting human capital is the asset that comes with its own liabilities when stepped on

We had some really good rampers that had been around a very long time. The majority, however, worked themselves right out of jobs. Despite the good paying jobs they had, they somehow felt as though they were invincible. While I am disappointed with the way that management handled the situation (because I believe they never really had any intention of keeping these folks, despite them wasting everyones time trying to maintain the appearance of "bargaining in good faith") we no longer see rampers hanging out in the terminal picking up on the cute young CSA's while both should have been working instead. Planes are generally met promptly when we arrive and marshalled into a gate without delay. Previously we could wait 5-10 minutes routinely for a marshalling crew when we all knew there were probably 40 rampers sitting around in their break room watching tv. Way too much attitude on the ramp previously that I, personally, don't miss.


User currently offlineEA CO AS From United States of America, joined Nov 2001, 13255 posts, RR: 62
Reply 13, posted (8 years 10 months 2 weeks 5 days 3 hours ago) and read 2409 times:
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AS gave there former rampers a choice

And it was a Hobson's Choice if ever there was one.

The real criminals is the union that put that stupid clause in there CURRENT contract.

That clause was entered as part of the "let's kiss and make up" contract after the debacle in 1985 - and the company has held onto it the way a Rottweiler hangs onto a steak for every contract since then.



"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan
User currently offlineCactus739 From United States of America, joined Jan 2004, 2430 posts, RR: 31
Reply 14, posted (8 years 10 months 2 weeks 5 days 2 hours ago) and read 2375 times:

Quoting EA CO AS (Reply 13):
That clause was entered as part of the "let's kiss and make up" contract after the debacle in 1985 - and the company has held onto it the way a Rottweiler hangs onto a steak for every contract since then.

What clause is that?



You can't fix stupid.... - Ron White
User currently offlineJc2354 From United States of America, joined May 2004, 564 posts, RR: 0
Reply 15, posted (8 years 10 months 2 weeks 5 days 2 hours ago) and read 2365 times:

Quoting Midex461 (Reply 3):
there will be many rumors in the marketplace about this proposed merger.

I just wonder the origination of the rumor. Phoenix or Seattle?



If not now, then when?
User currently offlineEA CO AS From United States of America, joined Nov 2001, 13255 posts, RR: 62
Reply 16, posted (8 years 10 months 2 weeks 5 days 1 hour ago) and read 2301 times:
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What clause is that?

AS managed to get a clause into the contract that enables AS to outsource any job function if they can find a cheaper provider.

That's how the SEA ramp was outsourced.



"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan
User currently offlinePlaneSmart From New Zealand, joined Dec 2004, 790 posts, RR: 0
Reply 17, posted (8 years 10 months 2 weeks 4 days 23 hours ago) and read 2255 times:

Quoting Mariner (Reply 6):
They have close to a billion bucks in unrestricted cash, and their share price is the highest of an US airline, higher than JetBlue, higher than SWA.

Cash or credit lines? Unrestricted cash would be arrived at after repaying all credit lines with covenants and constraints on use, plus those repayable on demand or short-term. An acquisition or merger, unless with widespread financier support, would be a trigger event for many of those lines to be repaid / lines cancelled.

Share price or share value? Share price compared to issue price, or if you go back far enough, face value may be a good guide. A company with a share price of $10 compared to another trading at $5 doesn't make one twice as valuable / twice as successful as the other. Are you saying the current share price times fully paid / issued shares makes AS more valuable than either JetBlue and SouthWest?


User currently offlineMariner From New Zealand, joined Nov 2001, 24635 posts, RR: 86
Reply 18, posted (8 years 10 months 2 weeks 4 days 23 hours ago) and read 2240 times:
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Trading at about $30 per share with a book value of over $21 per share.

Market cap of about $830 million, with an enterprise value of over $1 billion.

Don't hold me to this, because I haven't checked the SEC filing for a while, but I believe the l/t debt is around $1 billion, but most of that is guaranteed by aircraft, with unrestricted cash of over $760 million.

It's a pretty good balance sheet.

I think.

cheers

mariner



aeternum nauta
User currently offlinePhoenixX2 From United States of America, joined Apr 2005, 100 posts, RR: 0
Reply 19, posted (8 years 10 months 2 weeks 4 days 14 hours ago) and read 2168 times:

Quoting Midex461 (Reply 3):
"We have no current plans to become involved in a transaction with America West or US Airways

"Current" means "at the time of the filing" ONLY! AS has got to do something. They probably would want to have a "game plan" together before they announce anything. Their stock was taking a bath over this (like any acquiring airline). My thought was just US, but had no idea that HP and US was in the picture. Time will tell.

Rgds


User currently offlineNKP S2 From United States of America, joined Dec 1999, 1714 posts, RR: 5
Reply 20, posted (8 years 10 months 2 weeks 4 days 14 hours ago) and read 2146 times:

Modern day adage:

"Nothing adds more credence to a rumor than to have it officially denied"

[Edited 2005-06-05 18:29:50]

[Edited 2005-06-05 18:30:34]

User currently offlinePhoenixX2 From United States of America, joined Apr 2005, 100 posts, RR: 0
Reply 21, posted (8 years 10 months 2 weeks 3 days 15 hours ago) and read 1977 times:

http://yahoo.businessweek.com/magazi...e/content/05_24/b3937128_mz027.htm

That was Friday and this is today.


User currently offlineEA CO AS From United States of America, joined Nov 2001, 13255 posts, RR: 62
Reply 22, posted (8 years 10 months 2 weeks 3 days 13 hours ago) and read 1943 times:
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The BusinessWeek article you've linked is the very same article that started the whole rumor mill up. It, like many magazine articles, was dated a week or more out from the actual date it was made available to read.

Bottom line? You're referring to old news that AS has long since responded to as false.



"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan
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