"The world is going to want to find a compromise," said David Kelly, chief market strategist at J.P. Morgan Funds.» Read More
Industry sources say the two airlines have held on-again, off-again discussions. But recent merger activity in the industry could create pressure to accelerate the exploratory talks.
The airline industry has seen a wave of potential M&A activity of late. Reports say UAL, the parent of United Airlines, and Continental Airlines are talking merger – though analysts speculate a deal is still far off. Also, AirTran Holdings has made a hostile bid for Midwest Air Group worth $290 million, or $11.25 a share. All this comes just a month after US Airways Group made a hostile bid of its own for Delta Air Lines.
AirTran Holdings also said it offered to buy rival Midwest Air Group for $290 million in cash and tock. AirTran would pay $11.25 per share for Midwest.
We told you earlier about the U.S. stock selloff--but they ended up, making comeback and bouncing off their lows of the session. There was that triple digit sell-off late in the afternoon only to see a rally in the last half hour of trading. CNBC's Mary Thompson has all the details in "Eye On The Floor."
The market saw an afternoon selloff after a poor November Institute of Supply Management number. The ISM registered at 49.5 – down from 51.2 in October. It appears investors are getting a bit timid – despite a strong year – after a week of bad reports.