Hearing Transcripts
#112
I don't think the current share prices have anything to do with the value of the companies as seperate entities.
Investors read the newspaper. They know NWA shares are about to cease to exist. The market valuations are roughly equivalent right now because the market knows there is going to be a merger with a stock swap. NWA shares will be cancelled and new DAL common shares issued.
Its called arbitrage.
What you're seeing is the market value of "New Delta" reflected in the price of both NWA and DAL.
Last edited by Check Essential; 10-08-2008 at 02:58 PM.
#113
I've seen this "valuation" argument several times in the last few days.
I don't think the current share prices have anything to do with the value of the companies as seperate entities.
Investors read the newspaper. They know NWA shares are about to cease to exist. The market valuations are roughly equivalent right now because the market knows there is going to be a merger with a stock swap. NWA shares will be cancelled and new DAL common shares issued.
Its called arbitrage.
What you're seeing is the market value of "New Delta" reflected in the price of both NWA and DAL.
I don't think the current share prices have anything to do with the value of the companies as seperate entities.
Investors read the newspaper. They know NWA shares are about to cease to exist. The market valuations are roughly equivalent right now because the market knows there is going to be a merger with a stock swap. NWA shares will be cancelled and new DAL common shares issued.
Its called arbitrage.
What you're seeing is the market value of "New Delta" reflected in the price of both NWA and DAL.
Today's market cap of DAL: $1.717 billion
Today's market cap of NWA: $1.678 billion
On April 11, 2008 the Friday before the merger is announced the following Monday:
4-11-08 market cap of DAL: $3.042 billion
4-11-08 market cap of NWA: $2.899 billion
Once again this is in spite of the fact that NWA is and was 2/3 the size of DAL. There were days prior to the merger announcement and after the merger announcement where NWA's market cap exceeded that of DAL.
This was brought out by the NWALPA attorneys in arbitration and the DALPA experts agreed it was true. It's in the transcripts.
Carl
#116
Can't wait to see the "facts" that the NWALPA lawyers try and argue.
#118
Would you like me to post every recent version of meeting minutes with RA lately where he states that they are proposing replacing 787 orders with 777LR orders? Hence the "make believe".
#119
The DC9-40,59s CASM numbers are better than the RJs on shorter routes. Even Senor Buckingbar has agreed that the shorter routes under 1000 miles the DC9s numbers are better. Most of the numbers that are run comparing aircraft are done with longer routes. Most DC9 routes are around 500 miles therefore the DC9 has skewed numbers. .
#120
Sorry. Don't mean to be catty, I'm about to respond to Space.
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