As of this writing United, American, and Delta shares are up so far early in the trading day.
With Alaska’s announced purchase of Virgin America for $2.6 billion, a roughly 90% premium over the airline’s market value just two weeks ago, there was an immediate reception to the deal at the New York Stock Exchange.
Markets still aren’t loving Marriott’s purchase of Starwood, either.
While it’s usually a mistake to ascribe specific causes to daily — let alone intra-day — movements in share price, the changes are dramatic and linked directly in time to major news. And in Alaska’s case they run in direct contrast to the direction of the market this morning for the airline’s competitors.
Mergers rarely generate the benefits that are promised when they’re announced and costs are often greater than expected.