When I worked for AirTran there was a different rumor every week... Things that were somewhat reasonable (Delta buying out AirTran) to completely absurd (AirTran buying out United), but there was always something. That was back before 9/11 too, about a year after ValuJet and AirTran merged, so we weren't really in a position to be buying anyone out or anything.
Nothing ever happened despite what people were saying they heard from this manager and that exec and whatnot, but it seems they do have a spiffy fleet of brand new planes now! Not much of a whacky merger/spinoff story, but what the heck.......
Jeff