Kip Powick Posted January 10, 2007 Share Posted January 10, 2007 Delta offer increased by $1.7B US Airways Group Inc. said Wednesday it is increasing its offer for Delta Air Lines Inc. by US$1.7 billion as it seeks to put pressure on the bankrupt carrier's creditors to agree to a deal that management opposes. US Airways said it will pay $10.2 billion for Delta, up from its Nov. 15 bid currently valued at $8.5 billion. The raised bid comes just two weeks after the chief of Tempe, Ariz.-based US Airways, Doug Parker, told The Associated Press that his company had no intention at the time to increase its offer. Link to comment Share on other sites More sharing options...
W5 Posted January 10, 2007 Share Posted January 10, 2007 How a US Airways-Delta merger would stack up http://yahoo.reuters.com/news/articlehybri...omktNews&rpc=44 Link to comment Share on other sites More sharing options...
Super 80 Posted January 10, 2007 Share Posted January 10, 2007 I have listened to Parkers pitch on two different occasions - it doesn't make much sense. But if I had money on the game I would probably take his offer, although delusional - it is still better than Deltas reorganization plan. I am also not sure US Airways is aware of which Delta assets are owned and leased... Link to comment Share on other sites More sharing options...
Guest rattler Posted January 10, 2007 Share Posted January 10, 2007 Appears that Delta has a "B" plan. LONDON (AFX) - Northwest Airlines has been having recurring talks with Delta Air Lines about a potential link-up between the two, possibly after they both emerge from bankruptcy-court protection later this year, reported Wall Street Journal online citing people familiar with the matter. The paper said that meetings between executives at various levels of management and between the airlines' advisers have been occurring regularly for weeks, including some in recent days. These sessions have helped Delta's creditors come to see a combination with Northwest as a realistic alternative to US Airways' unsolicited takeover bid, the paper reported. US Airways earlier sweetened its offer for Delta to 10.2 bln usd, from its previous offer of 8.4 bln mid-November. The paper said that US Airways improved its original bid after Gordon Bethune, a former airline executive hired as an adviser by the Delta creditors, on Monday told US Airways its first offer wasn't good enough, said one person familiar with the matter. Delta, which has insisted that it wants to step out of Chapter 11 as an independent airline, has been trying to persuade its creditors that its standalone post-bankruptcy business plan is superior to US Airways' first offer. The Delta creditors, who met today, are taking the improved offer seriously and intend to pressure Delta to consider opening its books to due diligence by US Airways and possibly other suitors, the paper cited the person as saying. Meantime Northwest has emerged as a 'promising third option' to Delta's standalone plan and US Airways' sweetened bid, said one person familiar with the matter. Another person with knowledge of the matter said there also have been contacts by UAL Corp's United Airlines with Delta. But this individual said it is not clear whether Delta has officially investigated an alternative deal with either Northwest or United, the paper said. newsdesk@afxnews.com Link to comment Share on other sites More sharing options...
Kip Powick Posted January 10, 2007 Author Share Posted January 10, 2007 I am also not sure US Airways is aware of which Delta assets are owned and leased... I would think they know the name brand and color of the Delta CEO's shorts.... Link to comment Share on other sites More sharing options...
Super 80 Posted January 11, 2007 Share Posted January 11, 2007 At the time of the annoucement US seemed to be under the impression that their 737-800 fleet was leased. And that because of strong demand they would work out very good terms with the lessors for their return. The only problem with that is of the aircraft leased by Delta, most of them are scrap metal or pretty close. Non-ER 767's, Non-ETOPS 757's, some MD-88's and lots of CRJ-100's. None of which their lessors will be breaking down their doors for or in anyway encouraging them to return. Link to comment Share on other sites More sharing options...
W5 Posted January 31, 2007 Share Posted January 31, 2007 US Airways withdraws Delta offer http://yahoo.reuters.com/news/articlehybri...omktNews&rpc=44 Link to comment Share on other sites More sharing options...
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