Originally Posted by
Flyby1206
Doubtful, any airline who can finance $15billion to buy SWA already has a domestic network(AA,US/AWA, CAL, DAL). The growth now is international. There is also no point in a buyout from private equity, since SWA is already a financially solid company and doesnt need to be repaired and then re-IPOed.
Oh contrau, my friend. That is better then the broken ones. They don't have to investment $ beyond the buying part to fix it. If they(company being bought) have a large amount of assets(i.e. airplanes, expensive employees, etc.) that are paid for or close to it, then they can make $. Take company private, finance deal w/ aircraft, collect large mgmt/consulting fees(read make back our initial investment) in between, re-IPO after making it look pretty(read take $ from work groups), make out like pigs in $hit. This is just a new form of LBO'S
Just look at what Lorenzo and Ichan did in the 80's to the airlines, very similar just a different financing arm these days(private equity). So no shareholder/SEC oversight, you can work the books anyway you want to.
just my .02 cents