Originally Posted by
sailingfun
I think you are forgetting what Comair was before Delta opened the CVG hub. You also don't seem to understand stock splits. A split would not make it cheaper for Delta to purchase Comair.
I'm not forgetting anything. Yes, Delta and Comair built CVG together, but by 2000, the Comair operation was the larger of the two, and the customer base was built. Had they fought it out, it would have been ugly.
As for stock splits, I do understand them, and I also know the Comair history. The fiscal year was April to April. The stock would start the fiscal year at around $12-15 a share, then rise throughout the year to $35-40. At the following shareholders meeting, a split would occur, and the cycle would repeat itself.
Delta owned 20% the company (purchased when the company went public). When the bought Comair, they simply used Comair's cash reserves to pay for the purchase. It didn't cost Delta a nickel of their own money.