With transportation deals, as in life, it’s not the destination but the journey. Canadian Pacific Railway’s plan to close its $27 billion merger with Kansas City Southern has gotten fresh pushback after more than a year in limbo. And shareholders in JetBlue Airways’ tie-up with Spirit Airlines may be stuck in a similar layover. Painful concessions may be involved. But with deals in quasi-monopolistic industries, the key is seeing deals through.
Register now for FREE unlimited access to Reuters.comCP had planned for some hiccups. To gain approval from shareholders, the company closed the merger financially before it could do so operationally by putting shares in a trust. That would need to be unwound in the event regulators didn’t give their blessing.
Still, squeezing every bit of value out of the transaction is important. KCS' share price had risen more than 80% over several months last year after private equity firm Blackstone made an overture. KCS’ enterprise value-to-sales multiple was almost a quarter higher than bidders' valuations at the time.
Now the risk is that JetBlue's plan for Spirit could require raising ticket prices, effectively eliminating an ultra-low-cost carrier in some markets. That could upset regulators. JetBlue paid top dollar, too, offering significantly more than Frontier. On top of that, it has agreed to pay some cash upfront, plus a fee that ticks up as time goes on if the deal doesn’t close.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Day Trips: Fredericksburg Pie Co., FredericksburgDAY TRIPS: Fredericksburg Pie Co. has lots of tasty ways to stuff your pie hole.
Leer más »
Fort Worth Study to Focus on Public Transportation ReformsAn upcoming study is set to zero in on better transportation options for residents living in Fort Worth’s 76104 ZIP code.
Leer más »
Breakingviews - Breakingviews: U.S.-China relationship bleeds by a thousand cutsChinese officials love enumeration: the 'Three Represents' outlines the responsibilities of the Chinese Communist Party; the 'Five Confidences' codify socialism with Chinese characteristics. The latest 'Eight Suspends' may well become shorthand for the final stage of the disintegrating relationship between Washington and the People’s Republic.
Leer más »
Gen Z Gets Its Knives Out in ‘Bodies Bodies Bodies’Review: The stellar cast of ‘Bodies Bodies Bodies’ brings a painfully hip whodunnit to life.
Leer más »
I Used AI To See What The 'Pretty Little Liars' Characters Would Look Like Based On Their Book DescriptionsBook Aria kinda gives me nightmares, honestly.
Leer más »