Chapter 10: Studying Mergers and Acquisitons

Differences between acquisitions and mergers: the book define acquisitions as an strategy by which one firm acquired another through stock purchase or exchange, and merger are define as the consolidation or combination of two or more firms. Delta's merger with Northwest was announced in April 2008 and closed in October of that year after receiving regulatory and shareholder approval. And yet it still took 14 more months for the airlines to fly as a single carrier, in January 2010. Delta scored a major point by getting its pilot unions to agree to a common contract by the time the merger closed. Many analysts said this gave the airline a critical advantage by getting a crucial labor group on board from the start. But that did not put an end to Delta's labor issues. Flight attendant representatives accused the airline of using intimidation tactics after they lost a bid to unionize the carrier's work force in November. The matter is under review by the National Mediation Board, which could call a new election. Meanwhile, flight attendant from Delta and Northwest continue to work under separate contracts, each with their own work rules, and they can't not be scheduled to fly on the same airplanes. Delta Air Lines has completed tis $2.8 billion deal to acquire Northwest Airlines, creating the world's biggest carrier. The new Delta will be headquartered in Atlanta, and Delta chief Richard Anderson will head the combined carrier, which will integrate over the next 18 months.

http://www.nbcnews.com/id/27440244/#.Uc9mTu2LHdk

http://www.nytimes.com/2011/05/19/business/19air.html?pagewanted=all