Originally Posted by
WhiteRabbit
stock swaps happen in mergers, the scale of Alaska to American is different than Continental and United though. But Continental did enter the star alliance with United before the merger. The Doj approved it after a while, then merger talks resumed after they felt assured a merger would be approved. Not sure that’s what we are dealing with here but there is precedent.
https://www.flightglobal.com/united-.../93279.article
Exactly!
If equity were dispersed in a similar manner and valuation of UAL and CAL, ALK shareholders would hold 40% of the equity of the new company. Good luck selling that to the AMR shareholders. AMR needs a stock price of $60-70 for this to be at all palatable.