DELTA777
Posts: 637
Joined: Tue Mar 07, 2000 6:34 am

United & US Airways Merger Still On!

Fri Jul 13, 2001 10:38 pm

from Yahoo:

--United says to continue to pursue US Airways deal--

CHICAGO, July 12 (Reuters) - United Airlines parent company UAL Corp. (NYSE:UAL - news) said on Thursday that it will continue to pursue its proposed $4.3 billion takeover of US Airways (NYSE:U - news).

United Airlines, the No. 2 U.S. air carrier, said it recently proposed to US Airways that their merger agreement be scrapped, but US Airways rejected this idea.

Both airlines said in statements that they had provided the U.S. Department of Justice with the 21 days' advance notice required to obtain a determination of the department's position on the proposed deal.

US Airways said the airlines are ready to address any questions the department may have regarding the proposed merger.

Last week US Airways told its employees that the deal was no longer an option and said its board would meet next week to review its options.

Whats ganna happen now?

D E L T A 7 7 7
 
DCA-ROCguy
Posts: 3922
Joined: Fri Apr 21, 2000 5:03 am

RE: United & US Airways Merger Still On!

Sat Jul 14, 2001 7:37 am

There isn't going to be any merger. All of this is simply breakup formalities. Jim Goodwin apparently thought he could tiptoe away from the merger before the agreed-upon August 1 date and not pay the huge pre-Aug. 1 breakup fees stipulated in the agreement. As Anne Robinson might say, is there no beginning to his knowledge?

The only way that UA can get out of the fees, according to the merger agreement, is if DOJ rules against the merger. So UA triggered an apparently legally stipulated 21-day review period so that DOJ would rule by Aug. 1.

Wolf is just being a smart CEO....trying to squeeze as much $$$ out of UA as possible for breaking off the deal. Senator Specter can forget his dreams of a shotgun wedding.

Jim

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