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Could Delta buy AMR with Private Equity support | Advantage Dealbook

English: A Delta Airlines Airbus A330-323E lan...

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AMR filed for bankruptcy in November, estimating it has 18 months to restructure pay and leasing agreements and come back online. the airline has already found interested suitors in Delta Airlines, erstwhile Texas Pacific entity TPG Capital, and US Airways The official bid has to wait as AMR was delisted last week

Delta earlier bought Northwest Airlines and United and Continental got together past the Anti trust post. If Anti trust issues come up for the Delta bid, despite its considered concessions, it would mean  a wasted effort from the World’s biggest airline and a lot of break up fees for AMR on top of the new cost savings it negotiates. The bid would likely wait for AMR to negotiate the new contracts and contemplate life out of receivership anew

Delta’s bid however will be for the #1 position it got cheated out of withthe United  Continental merger. th elast time anti trust had come through on basis of cost savings and no lessening of competition in the industry

(Reuters- DAL_NWA)Justice officials cited the likelihood of “substantial and credible efficiencies” without harming consumers or competition.

TPG has worked with Continental to turn it aroun din the 90s and with AMR in managing Japan Airlines in 2009 and has a relationship with Tom Horton. US Air had earlier bid for Delta in 2004 at the end of its bankruptcy “quiet” period 🙂 and couldn’t bid right. Delta itself ahd closed the last bid in a all stock deal which could appeal to AMR

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