Investing
Pardus Capital Management To Take Delta (DAL) Merger To Shareholders
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Pardus Capital Management, which has taken a position in Delta (DAL), is going to push a merger with United (UAUA) by taking the proposal to other shareholders.
Odd as it may seem, the meeting will be hosted by Merrill Lynch (MER).
The Friday get together will provide a forum for Pardus and its adviser Gordon Bethune, the former chief executive of Continental Airlines Inc to present their analysis to investors, sources close to the situation said, according to Reuters.
While, in theory, a merger would cut competition and allow for an increase in fares, it would depend on whether other large airlines like American (AA) are willing to give up market shares. Putting the two companies together should also bring down costs.
Shares in United are up 30% this year, so stockholders should be happy. But the stock of Delta is flat.
Look grim for Delta management.
Douglas A. McIntyre
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