Delta Fares

USAirways $8B Bid for Delta ! ! !?

US Airways Group Inc. said Today it has made an $8 billion cash and stock offer for Delta Air Lines Inc. in a deal that would create one of the world's largest airlines. ----- Question: Would this be a great time to start purchasing "DALRQ" ???

Public Comments

1. It would be what we call speculation if you bought in. You could make a nice killing or you could lose your shirt.
2. Agreed, it'd be speculative. In general, when a company comes out of bankruptcy, the shares before the bankruptcy become worthless. That said, it's up to you. US Airways made a bid for DL at 25% premium. Are you willing to risk 100% for a potential 25% return? If you want to trade an airline, you might consider AMR, or CAL, or JBLU while are solvent companies currently looking seasonally strong. Good luck!
3. If you want to speculate, go ahead.
4. No. You are aware US Airways does not have $4,000,000,000.00 USD to pay for Delta, right? In fact, the entire US Airways is worth about $5 Billion and somebody rich enough could buy it and get Delta for FREE.