US Airways increases Delta bid to $10.2 billion
Published January 10th, 2007
US Airways Group has raised its offer for bankrupt Delta Air Lines increasing the bid to $10.2 billion from $8 billion.
US Airways is now offering Delta’s unsecured creditors $5 billion in cash and 89.5 million shares of US Airways stock.
Shares in US Airways were up 2.5% to $59.38, and shares in Delta jumped 7.7% to $1.40.
CEO Doug Parker said by extending this offer, US Airways is “making it much, much easier” for Delta creditors to accept it. Parker said that though US Airways’ original deal “offered substantially more value to Delta’s unsecured creditors than the Delta stand-alone plan, we are making this revised offer to eliminate any doubt that a merger with US Airways offers Delta’s unsecured creditors significantly more value.”
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