Not very close. At the time Norfolk-Southern (might have still been Norfolk and Western at the time) owned a considerable stake in PI
. What started the ball rolling on a possible buyout of PI
was N-S' s interest in PI
. They were going after a big inter-modal business.
In the last part of the 80's - leveraged buyouts and corporate raiding was the game of the day. TWA under Ichon was a part of this. It seems, if I recall correctly, PI
management wasn't interested in a merger that would overleverage PI
. I think the US deal resulted in a cash + a large stock swap without leverage. (IIRC)
N-S's filings to purchase PI
got US in a bidding war. Difficult to say if this was N-S's goal or not (I tend to think it was). But, the result was that US overpaid for PI
, and never really got over it. They are just now starting to use PI
hub to its advantage.
Anyway, I mention all of this because, had TWA tried to purchase PI
, N-S would have tried the same stunt. With Ichon at the helm of TWA, they would have never gone for the price that N-S was willing to pay. Nor would have PI
exec's agreed to Ichon terms. (I think, anyway)
|Quoting AirEMS (Thread starter):|
Would this have been better for Piedmont than being bought / merged with USAir?
That depends on your point of view. Since ultimately airlines are in business for their shareholders, and US was willing to pay such a premium, it would be difficult to conclude that TWA would have been able to offer PI
a better deal. Also, remember, CLT
's largest hub, is still intact. Here again, difficult to say former PI
folks are worse off. (I know, there will be plenty that disagree, look at the ROA
station, a shell of what it once was)
What could have been is N-S being successful in the purchase of PI
. I think that if this had been the case, we would still see the brand around. And with a very large cargo operation as well. ( I think it would be thriving as well)
Had TWA been successful, I think we would still be looking at a airline industry similar to today. No PI
, No TWA.
Rex Kramer: Get that finger out of your ear! You don't know where that finger's been!