Hidden information in press releases.
Read the following press release and see if you can tell how much Wellington paid for their investment into this company. Did they get a discount on their invesment? If so how much? Do they get extra benefits like debt conversions? You cant tell. This does not make this a bad or good investment I posted this to illustrate that even with all of the regulations something like price should be included in plain simple language in the press release without having to dig through filings or get an attorney to explain it. I have found it interesting that when I have called investor relations depts. of companies like this they do not know the answers and they flip me over to their head counsel that takes 2 days to call back.
Read the second paragraph very closely about Wellington. Why dont they disclose the price and the terms?
WASHINGTON (Reuters) - Outside investors will control 49 percent of the airline that will result from the planned merger of bankrupt US Airways (OTC BB:UAIRQ.OB - news) with America West Airlines (NYSE:AWA - news), according to a regulatory filing on Tuesday.
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The ownership by outside investors, including several hedge funds, is larger than was announced when the merger deal was first struck last month, and reflects $149 million in new equity from Boston-based Wellington Management Co. LLP.
America West will hold 39 percent of the new entity, down from a previously announced 45 percent, while US Airways shareholders will own 12 percent, down from 14 percent, according to the proxy statement with the U.S.
Securities and Exchange Commission on the proposed merger.
The new equity partners, which also include Air Canada's parent ACE Aviation Holdings Inc. (Toronto:ACERV.TO - news) and Boston's PAR Capital Management, had originally been expected to own 41 percent of the new entity, which will be the fifth-largest domestic carrier.
The filing comes days after U.S. anti-trust authorities cleared the proposed deal, worth up to $1.5 billion.
The filing did not reveal the date of America West's stockholder meeting to vote on the proposed merger.
As previously disclosed, the new company will operate under the US Airways brand name. The filing did not include the stock symbol it intends to trade under on the
New York Stock Exchange.
Those details are expected in future filings.
America West has said it hopes to complete the merger by the second half of 2005.
Under the deal, holders of America West Class A common stock will receive 0.5362 of a share of new US Airways Group common stock for each America West share, and holders of America West Class B stock will receive 0.4125 of share of the new stock for each America West share.
W. Douglas Parker, the current chairman and chief executive of America West, will retain those titles in the new company.
Bruce Lakefield, the current president and chief executive of US Airways, will serve as vice chairman following the proposed merger.
Posted by smusielski
at 9:57 AM EDT
