Bedfords letter to the RAH pilots - Page 2 - Airline Pilot Central Forums

#11

ToiletDuck , 06-29-2009 08:43 AM

Che Guevara

Quote:

Originally Posted by Mason32

the term majority investor simply means he will be the single investor with the largest share of the company.... it could be 10%, it could be 49%.... as long as it is less than 51% he does not have controlling interest in the company. So, assuming he buys 49%, the remianing 51% could be owned by hunders of thousands of small investors....

Yes I completely understand I just had a brain block at the moment. The initial bid that was submitted was for 100% and right now that's all there is. If he gets 100% that's all the union needs to force integration which would keep the crappy pay on the 190s from getting even crappier after we fight for too high of pay and he shifts them to Lynx.

#12

F9er , 06-29-2009 09:16 AM

Gets Weekends Off

Quote:

Originally Posted by planediveguy

That is correct. BB has expressed to us in a "Town Hall Meeting" style podcast that he has no intentions whatsoever in merging seniority lists with F9. He said that he wants to negotiate this with the IBT first, and if no agreement is made he would relinquish control of F9 in order to prevent the training costs nightmare and the bitter reaction from F9 pilots.

The IBT will probably not go for that. But they will go for putting up fences in order to protect the F9 guys/girls seats. Also BB mentioned that he would like to see a deal where if growth is achieved in the F9 or RW certificates, then instead of hiring from the street, he would like to see pilots to be able to bid for that across certificates. If we buy more Airbuses, then RW guys would have first pick to bid for those FO positions, and if more 190's come in then F9 people could probably upgrade on this side of the fence...

Let's see what happens... who knows, WN can bid, purchase and then shut down their competition....

mmmm no, but you can keep dreaming

#13

ToiletDuck , 06-29-2009 09:18 AM

Che Guevara

Quote:

Originally Posted by F9er

mmmm no, but you can keep dreaming

Keep dreaming? No offense but where is all this new found strength coming from? If Frontier is bought it will be integrated.

#14

H46Bubba , 06-29-2009 09:46 AM

Gets Weekends Off

Quote:

Originally Posted by planediveguy

He's alive!

How are things going for you?

#15

i121ADX , 06-29-2009 10:04 AM

Gets Weekends Off

Quote:

Originally Posted by JetJock16

If he purchases 49% and there are two other investors, one with 25% the other 26%, then he is the majority investor but doesn't technically have controlling interest.

All BB has to do is convince 2% of the F9 shareholders to have controlling stake. So really, if BB wanted controlling stake, he could find 2% of the shareholders because there's one thing all investors care about. Money. I know as I invest and I want a return on every thing I invest it.

If somebody came up to me and said, "We would like to buy your shares of F9 for $25.00 per share." You'd be dumb not to take it. Even then, if BB can show at least 2% he can make them more money by him taking over, all he has to do is vote himself onto the Board.

He's actually in a prime position right now.

#16

bryris , 06-29-2009 11:09 AM

Gets Weekends Off

Quote:

Originally Posted by JetJock16

If he purchases 49% and there are two other investors, one with 25% the other 26%, then he is the majority investor but doesn't technically have controlling interest.

I am not sure what their capital structure is, but RAH could also purchase non voting shares without messing with the control percentage.

#17

F9er , 06-29-2009 11:10 AM

Gets Weekends Off

He is in a very prime position, because he has secured himself in the DIP financing. With an acquisition he not only gets his money back plus some, but buys a profitable product for very cheap. If SWA were to bid they would have to consider the 100+ million PLUS whatever RAH is owed via there unsecured DIP financing and payback so it would actually cost SWA around 300 million to buy what BB is getting for 100(ish). He is a very smart business man, you cant discredit that.

#18

i121ADX , 06-29-2009 11:54 AM

Gets Weekends Off

As much as I don't like him, G** D***. He is smart.

#19

Flyboyrw , 06-29-2009 01:22 PM

Gets Weekends Off

Quote:

Originally Posted by ToiletDuck

If Frontier is bought it will be integrated.

No it won't

#20

320ToBearz , 06-29-2009 01:27 PM

Gets Weekends Off

Quote:

Originally Posted by planediveguy

Also BB mentioned that he would like to see a deal where if growth is achieved in the F9 or RW certificates, then instead of hiring from the street, he would like to see pilots to be able to bid for that across certificates. If we buy more Airbuses, then RW guys would have first pick to bid for those FO positions, and if more 190's come in then F9 people could probably upgrade on this side of the fence...

Hmm, we've seen that before. No thank you.