Re: McDonnell Douglas & Boeing To Merge -- Press Release Text

Date:         16 Dec 96 03:15:36 
From:         kls@ohare.Chicago.COM (Karl Swartz)
Organization: Chicago Software Works, Menlo Park, California
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>The article did not mention if this merger has been approved by the
>government.  Does anyone have information or speculation about this?

The first paragraph you snipped off said:

    The transaction is subject to approval by the shareholders of
    both companies and certain regulatory agencies, and is expected
    to close as early as mid-1997.

"Certain regulatory agencies" means the government.  Since the deal
was closed on Saturday (and announced on Sunday), the government has
not had much time to give it any thought yet, much less approve it.

Wall Street seems to think it will not meet with much resistance,
since the two companies are quite complementary.  I agree.  On the
commercial side (most relevant to these newsgroups), MD's recent
statement that they were not going to pursue the MD-12 project
merely confirmed the obvious fact that their commercial business was
dying.  No real anti-trust issue there.

Losing a spot in the final runoff for the Joint Strike Fighter (JSF)
also put MD's long-term military future in some doubt.  Of the final
two contestants, Lockheed-Martin is seen as more conservative while
Boeing promises a better overall deal *if* they can actually do it.
MD's military experience gives the Boeing JSF program a boost in its
weak spot, to the military's benefit.

Karl Swartz	|Home
Moderator of sci.aeronautics.airliners -- Unix/network work pays the bills