Word: twa
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Dates: during 2000-2009
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...wrote Humorist Art Buchwald 19 years ago, during the last big wave of corporate mergers. These days the prospect that he wryly foresaw seems considerably less farfetched. In recent months such household names as ABC, TWA and Nabisco have agreed to sell out to other firms and cease to be independent enterprises. They will follow Bendix, Gulf Oil, Conoco and other giants that have already surrendered their separate identities. Since 1980, no fewer than 62 members of the FORTUNE 500 list of industrial behemoths have been swallowed by other companies...
People's discounts on its new routes are coming just as some major airlines are trying to raise prices. Last week several carriers, including Pan Am and TWA, announced that they intended to increase some fares an average of 4%. They were following the lead of United, which two weeks ago announced a similar plan, to begin Aug. 17. The higher prices may not stick, however, if People's aggressiveness sparks a new round of fare wars...
...TWA's unions, led by the Air Line Pilots Association, were vehemently opposed to a Lorenzo takeover. They feared that he would once again resort to a tactic he had used after Texas Air won a battle for control of Continental Airlines. In 1983 Lorenzo took Continental into bankruptcy proceedings, which enabled the company to void union contracts and slash employee salaries. That maneuver earned Lorenzo a reputation as a union buster...
Corporate Raider Carl Icahn's usual strategy is to buy a stake in a target company and then sell out to another bidder at a huge profit. But this time the New York City financier may stick around and keep the business. Last week he gained virtual control of TWA, the sixth largest U.S. airline, by accumulating at least 45.5% of the company's stock. In the process Icahn may have defeated Frank Lorenzo, the chairman of Texas Air and a rival bidder for TWA, with a series of intricate maneuvers worthy of the Navy's Blue Angels flying aces...
Only last June TWA's board tentatively accepted a $23-a-share takeover bid from Lorenzo to escape a previous $18-a-share offer by Icahn. In fact, TWA President Carl Meyer openly courted Lorenzo, fearing that Icahn might dismantle the company and sell its pieces for quick gain. After the TWA-Lorenzo deal, Wall Street expected Icahn to cash in his 35% stake and reap an estimated $50 million profit...