If there is merger premium priced in, I'm not sure what logic was used. I agree that LCC offers a very low P/E which is justification enough own it. The merger will severely dilute our shares (I own call options), but LCC appears to be well run at the moment and the additional routes available post-merger would be beneficial. With that said, I would be just as content to see the merger fail. I like owning a well run company that has a low P/E. The heavy dilution will likely more than offset any near-term benefits of a merger.
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