Posts: 199
Joined: Tue May 25, 1999 11:30 am

Who Is Buying US Airways?

Thu Mar 30, 2000 10:58 pm

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 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.

AACrew Chief
Posts: 89
Joined: Mon Mar 06, 2000 2:48 pm

RE: Who Is Buying US Airways?

Fri Mar 31, 2000 2:29 pm

I wouldn't be surprised if AA jump in...AA had a plan to send TKT Agt to some of the city most effected by a US Air F/A strike also US Air now use's SABRE...And AA want's more of the Northeast and east coast pie.
UPS Pilot
Posts: 866
Joined: Tue May 18, 1999 1:17 pm

I Did!

Fri Mar 31, 2000 2:35 pm

I bought some U.S. Airways stock. I know this isn't a stock forum but with the new deal laid out. A new fleet being delivered, and the stock price low right now it's a good time to buy it. Who else is better leveraged with flights on the east coast?
OK now "Show me the $$$$"  

RE:Who Is Buying US Airways?

Fri Mar 31, 2000 2:42 pm

United?? Sounds very interesting now that the ESOP is ending. Wasn't UAL interested in US Air relatively recently or am I mixing that up with the Delta deal??
Posts: 1059
Joined: Tue May 18, 1999 4:41 am

RE: RE:Who Is Buying US Airways?

Fri Mar 31, 2000 2:48 pm

UAL and Delta were close to an alliance/merger kind of thing. The only thing that prevented it was the pilots. It kind of sucks too, that would have been a really good idea to ally and make travel better in the world. UAL would probably like US Airways mostly because UAL isn't too strong in the east, except out of IAD. Delta already has the east coast, but really need something in the west so they probably aren't in the running.

RE: Who Is Buying US Airways?

Fri Mar 31, 2000 4:58 pm

The DOJ regulators will never swallow UAL + US. AA + US is a maybe but may have to sell off assets to gain approval.

Rumors of AA buying US and vice versa are never-ending. It did seem likely at one point, but will probably not happen in the near future. Maybe the Tiger shares wont go to a single owner, and it may not be an airline.
Posts: 199
Joined: Tue May 25, 1999 11:30 am

RE: Who Is Buying US Airways?

Fri Mar 31, 2000 11:05 pm

Well Barnaby,
If that is the case than what is your opinion on what will save US Airways. As we've recently seen with the F/A contract dispute, the country relies very heavily on US Airways on the east simply going out of business isnt likely to happen...

What will?
Posts: 968
Joined: Sun Dec 05, 1999 7:03 am

RE: Who Is Buying US Airways?

Sat Apr 01, 2000 9:15 am

Don't forget that US is sitting on some big chunks of cash right now. It wouldn't surprise me to see US Airways buy back that 22%.

Another option is that a company completely outside the realm of aviation buy that stock.

We just need to sit back and watch.

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