Jun 14 2008
Delta Layoffs a Good Sign
Corporate acquisitions seldom help the buying company. Promises of synergistic growth typically fall way, way short, studies show. However, if cost saving is the goal of a corporate acquisition, then the buyer’s stock goes up.
That’s why Delta’s move to cut 4,000 jobs is a positive sign for the impending deal with Northwestern. When cost cutting is on the brain, shares go up.
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