With Tiger Management poised to sell 22% of US Airways stock (a lot of negative pressure on US market capitalization) many investors feel the time is right for a big corporate transaction at US Airways. It is not likely to be foreign investment or ownership due to strict limitations on foreign ownership...so who? Who wants 22% of US Airways?
"Wednesday, March 29, 9:25 PM EST Providence, RI--Good evening to all. It is Wednesday, and boy do we have some interesting news coming from the canyons of Wall Street that directly impacts one of the things with wings this evening.
It is being reported by a number of news sources that Julian Robertson, one of the leading hedge fund managers on Wall Street, is closing down his Tiger Management hedge fund group this Friday.
Until very recently, Tiger was the second largest hedge fund in the world, behind George Soros' Soros Fund Management.
For those of you who don't know what a hedge fund is--it is primarily a partnership of select institutional investors and private investors--that, when things are working right, usually produces higher than average returns for its investors.
But Julian's track record has stunk of late. And one of the main reasons so much money has fled his fund is because of one stock--and its underperformance. That one stock is--US Airways.
If the reports are true, and I believe they are, given the current situation with the fund's holdings, this means that Tiger, which currently owns 22% of the airline, will probably be unloading these 16.5 million shares--and sooner rather than later.
Isn't this an interesting situation? I think so.
Now, ordinarily, if these shares would have to be dumped rather quickly, given the number of shares we are talking about, one would expect that this could put a negative pressure on shares of US Airways. But I see another very strong scenario that may develop. I think we might have one buyer that could step up and buy them all. We could even have a bidding war.
My bets are that this event could very certainly be the catalyst for another airline to jump in and take a sizable piece of the airline, with very little effort, and at a very CHEAP price.
And I'd say we have at least one, if not two hot possibles at the top of the list. Can you guess who? First three guesses don't count.
We'll see. But one thing is for sure. This is a big deal. "
My money is on United.