US Air's Offer for Delta Loses More Ground With Creditors

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delta777

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Can we finally put this baby to rest and let Doogie find another hostile takeover target...

As a U.S. Senate committee prepares to take testimony tomorrow on consolidation in the airline industry, US Airways Group Inc.'s hostile $10.1 billion bid for Delta Air Lines Inc. appears to be losing traction among creditors who will determine the fate of the Atlanta airline, according to people familiar with the matter.

After digging into the details of the US Airways offer -- which was sweetened 20% less than two weeks ago -- and hiring former Continental Airlines Inc. Chairman Gordon Bethune to help analyze its prospects, the Delta creditors' committee has grown skeptical of the proposed merger, these people ...

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Can we finally put this baby to rest and let Doogie find another hostile takeover target...

As a U.S. Senate committee prepares to take testimony tomorrow on consolidation in the airline industry, US Airways Group Inc.'s hostile $10.1 billion bid for Delta Air Lines Inc. appears to be losing traction among creditors who will determine the fate of the Atlanta airline, according to people familiar with the matter.

After digging into the details of the US Airways offer -- which was sweetened 20% less than two weeks ago -- and hiring former Continental Airlines Inc. Chairman Gordon Bethune to help analyze its prospects, the Delta creditors' committee has grown skeptical of the proposed merger, these people ...

Must a subscriber for full article.

Here's the link,


http://users2.wsj.com/lmda/do/checkLogin?m...KTW%26ru%3DMKTW
 
Things sure would get more interesting if US Airways raised its offer yet again. As I posted on another thread a couple days ago, the word around Delta HQ is that the creditors are solidly behind the Delta plan and the merger is all but dead.
Maybe, but it sounds a little like both plans have concerns with the creditors.
 
US Airways is asking Delta's official creditors committee to support postponing that hearing. It has said that if that condition is not met by Feb. 1, along with several other conditions, it will revoke its bid for Delta.

Parker said Tuesday that US Airways made that point to the creditors committee as recently as last week that time is running out for action by the committee.

"We made it crystal clear, if there is no action by Feb. 1, then our offer is withdrawn," Parker said. "They fully understand that now. We're dead serious about the deadline."


Ya think doogie could use a little crow sent his way to go with all that salt he has been pounding........
 
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