The trial for the merger SAVE-Jetblue is going on, it just finished its 3rd week and I think there is 1 more week left. Information seems very hard to come by on this one. If the deal goes through SAVE goes to $30, from the $12.50 it closed the week.
The earnings for Q3, or the losses in this case were horrible. However, Jetblue seems commited to the acquisition, in the trial they have offered plans to do diverstitures if needed to complete the merger. Also the DOJ case is ridiculous, there is no monopoly in the airline business and those 2 combined, are definitely not a monopoly. With the populism going on in the world right now though, you never know.
I give it more than 50% for the deal to go through, thus on an expected value SAVE is still a buy, though I didn't have the stomach to buy more, I am still holding.
I found this on youtube that helped shed some light:
youtube.com |
