FedEx being bought?
 

FedEx stock up today (7/9) on speculation of a possible buyout:

http://biz.yahoo.com/ap/070709/fedex.html?.v=1

You're a day late! ;)

http://airlinepilotforums.com/showthread.php?t=14377

Implications???
 

Not being an MBA type, I am wondering what the implications for us pilots MIGHT be (short and long term) IF such a buyout were to occur. Anybody having experience with this sort of thing please feel free to elucidate my limited business brain......Anybody except for Rowdy1 that is. He seems to lean towards the "glass is totally empty" view of things.

Thanks

Based on every other LBO I've ever heard of...the shareholders make money, the employees get hosed and the compnay is financially weakened.

Remember Gordon Gekko? Greed is Good!

The theory is that capital assets can be "cashed out" and create enough profit to pay for the investment funds required to do the deal.

Then the company is either scrapped or run with leased equipment and debt instead of capital and money in the bank.

Then the cost-cutting begins, because hey, we're just not profitable anymore....

More here.


"After a major corporate restructuring, which may involve selling off portions of the company and severe staff reductions, the entity would likely be producing a higher income stream."

Just think NWA 1988 or so.

Where is Rowdy1 when we need him?

Been there done that.... EAL '86--thru '89....... His name was Frank Lorenzo.......:(

Sorry...
 

[QUOTE=MD11Fr8Dog;192762]You're a day late! ;)

Yikes! Story of my life--always a day late and a dollar short.