Everyone should know by now more acquisition news in the airline space. AirTran Holdings just increased their bid to get MidWest Air Group, as did US Airways for Delta Airlines. I mentioned it before here, and I'll state it again. It won't happen, Delta's managements still oppose the deal, and if all hell freezes and it does go through, I can bet everything that US Airway's stocks will sink. Reason why? $10.3 billion isn't cheap, and almost 50% of that will be funded by increased debt. DEBT, like a leech that will continue to suck on their resources. Investors and everyone alike would get scared if US Airways really absorbed so much additional debt.
Besides, Delta is rumored to have their eyes on Northwest airlines. Shares on US Airways are up today after media has exposed that Delta is still very much against the deal. Their prices had dipped a bit after they announced the increase in their bid.