Delta and the Fallacy of Vertical Integration

 

When I saw that Delta Air Lines Inc. (DAL) is negotiating to buy an idled Pennsylvania oil refinery in hopes of saving money on its fuel bill, I had a flashback to July 7, 1981.

Back then, I was an intern in the now-defunct Philadelphia bureau of the Wall Street Journal, and DuPont Co. had just announced its agreement to buy Conoco Inc. for about $7 billion in cash and stock. At the time, it was the largest corporate merger in history.

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