This is one behemoth to try and get one’s arms wrapped around.
1. If the Delta Air Lines management team is the surviving team, fine. If not, no. (Just think, this will mean that Jake Brace and Glenn Tilton will get yet another stratospheric payout.)
2. As I told Barney Gimble with Fortune today, “As I’ve said in the past, the money guys will dictate who goes after whom. Not the players themselves.”
That was true last year. Same now.
If this hedge fund can convince other major players on the Street to support the deal — that is what will make or break it.
Employees and shareholders will have little to say in this type of situation. Delta ALPA MEC Chairman Lee Moak can say whatever he wants to say about how the pilots at Delta have to be involved from the get-go with any “merger discussions,” but indications this afternoon are that this one is already pretty far along.
As I write this, reports are flying all over the place, no pun intended, with some reports suggesting that the headquarters of the airline would remain in Chicago, but that Delta AIr Lines’ CEO Richard Anderson would be named CEO of the new airline.
Atlanta would be used primarily as an “operations” center.
Again — just one set of rumors that are flying this afternoon in regard to the potential deal.
Ticker: (UAL:NYSE), (DAL:NYSE)
Technorati Tags: airline CEOs, airline industry news, airlines, Delta Air Lines, United Airlines