Gilding the Lily
Veteran
- Oct 30, 2006
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Segments of an article published in "The Deal" on December 22, 2006:
The tone of Delta Air Lines Inc.'s condemnation of US Airways Group Inc.'s hostile acquisition bid has convinced some industry watchers that the bankrupt airline might be more hospitable to another merger partner.
Sources close to Delta who asked not to be identified said that the airline has not received any other firm offers, but that could change in the weeks to come as creditors and rivals have time to digest the details of Delta's standalone plan and US Airway's offer.
The most likely third party to take an interest in US Airways is UAL Corp.'s United Airlines Inc. Management of Chicago-based United have made it clear they advocate industry consolidation, and they have shown a willingness to lead the way. Industry sources say the company has in recent months approached Delta.
While Continental is likely United's preferred merger partner, the Houston-based airline is believed to prefer remaining independent. A Delta and United pairing would face little of the antitrust worry that has consumed critics of the Delta-US Airways deal, and it would create an airline with strengths across the Atlantic and Pacific and throughout the U.S.
The tone of Delta Air Lines Inc.'s condemnation of US Airways Group Inc.'s hostile acquisition bid has convinced some industry watchers that the bankrupt airline might be more hospitable to another merger partner.
Sources close to Delta who asked not to be identified said that the airline has not received any other firm offers, but that could change in the weeks to come as creditors and rivals have time to digest the details of Delta's standalone plan and US Airway's offer.
The most likely third party to take an interest in US Airways is UAL Corp.'s United Airlines Inc. Management of Chicago-based United have made it clear they advocate industry consolidation, and they have shown a willingness to lead the way. Industry sources say the company has in recent months approached Delta.
While Continental is likely United's preferred merger partner, the Houston-based airline is believed to prefer remaining independent. A Delta and United pairing would face little of the antitrust worry that has consumed critics of the Delta-US Airways deal, and it would create an airline with strengths across the Atlantic and Pacific and throughout the U.S.