Times Online January 19, 2007
Delta to discuss $10.2bn bid from US Airways
The board of Delta Air Lines, the third-largest carrier in the United States, said it plans to discuss an increased $10.2 billion (£5.16 billion) hostile takeover bid from US Airways.
Delta's management has repeatedly said that it opposes a merger with US Airways, but admitted today that it was obligated to review US Airways’ improved offer that was made on January 10. Its board rejected US Airways’ initial offer, which was made last November. The current offer is about 20 per cent higher than the original.
Delta has estimated that it will be worth $9.4 billion to $12 billion if it realises its aim of emerging from Chapter 11 bankruptcy protection by the middle of this year as a standalone company.
Delta said in a statement: "Delta’s management and advisers are evaluating the revised US Airways proposal, in anticipation of making a further presentation to Delta’s board of directors in the near future."
The news emerged as Delta filed an amended reorganisation plan that detailed how it would satisfy claims against its subsidiary, Comair.
Delta's amended reorganisation plan includes a call for unsecured creditors of its Comair subsidiary to receive between 76 per cent and 100 per cent of their allowed claims. There are roughly $1.4 billion in unsecured claims against Comair, of which about $800 million is projected to be allowed claims, Delta said.
Delta added that general unsecured claims against Comair would be paid through the issuance of new Delta stock once the group emerges from bankruptcy.
Secured and priority claims against Comair will be paid in full, Delta said. Securities litigation claims against Comair would receive no payment under Delta's reorganisation plan.
Yesterday, Continental Airlines provided a sign of a recovery in the US airline industry when it said it narrowed its fourth-quarter net loss. The group, which has explored the possibility of a merger with UAL’s United Airlines, said that it lost $26 million in the final three months of 2006, compared with a loss of $43 million a year earlier.
A day earlier AMR, the parent company of American Airlines, posted its first annual profit since 2000.
According to reports, exploratory talks between Continental and UAL took on renewed urgency after US Airways Group's bid for Delta.
Delta to discuss $10.2bn bid from US Airways
The board of Delta Air Lines, the third-largest carrier in the United States, said it plans to discuss an increased $10.2 billion (£5.16 billion) hostile takeover bid from US Airways.
Delta's management has repeatedly said that it opposes a merger with US Airways, but admitted today that it was obligated to review US Airways’ improved offer that was made on January 10. Its board rejected US Airways’ initial offer, which was made last November. The current offer is about 20 per cent higher than the original.
Delta has estimated that it will be worth $9.4 billion to $12 billion if it realises its aim of emerging from Chapter 11 bankruptcy protection by the middle of this year as a standalone company.
Delta said in a statement: "Delta’s management and advisers are evaluating the revised US Airways proposal, in anticipation of making a further presentation to Delta’s board of directors in the near future."
The news emerged as Delta filed an amended reorganisation plan that detailed how it would satisfy claims against its subsidiary, Comair.
Delta's amended reorganisation plan includes a call for unsecured creditors of its Comair subsidiary to receive between 76 per cent and 100 per cent of their allowed claims. There are roughly $1.4 billion in unsecured claims against Comair, of which about $800 million is projected to be allowed claims, Delta said.
Delta added that general unsecured claims against Comair would be paid through the issuance of new Delta stock once the group emerges from bankruptcy.
Secured and priority claims against Comair will be paid in full, Delta said. Securities litigation claims against Comair would receive no payment under Delta's reorganisation plan.
Yesterday, Continental Airlines provided a sign of a recovery in the US airline industry when it said it narrowed its fourth-quarter net loss. The group, which has explored the possibility of a merger with UAL’s United Airlines, said that it lost $26 million in the final three months of 2006, compared with a loss of $43 million a year earlier.
A day earlier AMR, the parent company of American Airlines, posted its first annual profit since 2000.
According to reports, exploratory talks between Continental and UAL took on renewed urgency after US Airways Group's bid for Delta.
