Page "Frank Lorenzo" Paragraph 15

Analysts wondered why Lorenzo and TIA would try to take over such a large company ; some speculated that he and his team would " love to cure TWA ", believed it could " work miracles " at TWA, or were interested in other profitable businesses owned by Trans World Corp, including Hilton International, Canteen Vending, and Spartan Food Systems.

Others suggested Lorenzo was trying to create another profit on the sale of stock, which he denied.

Still other analysts had a different perspective, pointing to the structural and financial synergies that a TIA and TWA merger would present.

One offered that TIA “ would get a route system, equipment and facilities in place .” To other analysts and even airline executives, it was obvious why Lorenzo was interested in TWA: said one executive, “ Frank ’ s a financial man — that ’ s his game ,” and TWA offered Lorenzo a tricky financial situation with an unattractive amount of long term debt ($ 643 million, a relatively large amount in the industry ) offset by a portion of that debt carrying an extremely attractive and low interest rate of 4 %.