US offers to increase bid again


Dec 21, 2006
From the Wall Street Journal.

US Airways Group Inc. is willing to increase its hostile takeover offer for Delta Air Lines Inc. by $1 billion under certain conditions as part of a last-ditch effort to win support from Delta creditors, according to people familiar with the matter.

The Tempe, Ariz., carrier said over the weekend it would sweeten its $9.8 billion cash-and-stock bid to about $10.8 billion if the official committee of creditors approaches Delta with a demand that the Atlanta airline open itself to due diligence by US Airways, these people said. To get the additional $1 billion, all in cash, the committee also would have to ask a bankruptcy judge to postpone a hearing next week on Delta's restructuring plan, these people said. The group also would have to agree to support the start of a formal antitrust review.
US Airways indicated that the $10.8 billion bid was final, said one person familiar with the matter. This person said the airline didn't consider the increased bid official since it hadn't yet sought director approval.