Pointless Shareholder Activism, Pardus Edition

The problem with airline mergers is not that people think they’re a bad idea.

Not at all: pretty much every airline-industry executive in America thinks that

consolidation in the industry is inevitable and a great idea in theory. But

the practical obstacles that need to be overcome to effect a successful airline

merger are enormous, and it’s far from clear that a company which can’t even

operate its own flights efficiently will magically acquire the management abilities

needed to merge with a former rival without destroying billions of dollars in

value. So what is Pardus Capital Management achieving by getting

all shareholder-activist on the management of Delta and United, telling

them that they should merge (yes, they know that already), without telling them

how? The Epicurean Dealmaker, for one, would

like to know – and I can assure you that his blog entry is far more

entertaining than Pardus’s letter to Delta.

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