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US Airways – Delta Merger Update: December 12, 2007
Delta board discusses US Airways bid: paper
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Delta Board Weights US Air’s Offer
NEW YORK (WSJ) – The board of Delta air Lines Inc. met by conference call to discuss US Airways Group Inc.’s $8.5 billion hostile bid, but the directors aren’t expected to issue a formal position on the offer for several days, according to people familiar with the matter.
The meeting came as executives at Delta and its major creditors prepared for a new round of talks regarding the US Airways bid scheduled for tomorrow in New York. US Airways presented details of its offer, consisting of $4 billion in cash and about $4.5 billion in stock, nearly two weeks ago, in a session marked by occasionally tense exchanges between executives from the airlines.
Delta, which filed for Chapter 11 bankruptcy-court protection in September 2005, is expected to release early next week its reorganization plan for exiting from bankruptcy as a stand-alone company. Coming one month after US Airways launched the hostile offer, the Delta plan effectively will be the company’s counterproposal aimed at persuading its creditors not to support the US Airways bid.
The board vote is largely a formality, since there is nearly no possibility that Delta’s board would endorse the US Airways offer, according to people familiar with the situation. Delta officials, including Chief Executive Gerald Grinstein, have made repeated public assertions that Delta should emerge independently from bankruptcy early next year. He has resisted US Airways’ request for access to Delta financial records to perform due diligence on the offer.
Tomorrow’s meeting of creditors could increase pressure on Delta to open its books. The group of nine major creditors, who represent unsecured claim holders in Delta’s bankruptcy proceedings, is scheduled to hear presentations from their own advisers hired to evaluate the US Airways bid and an analysis of the offer by Delta. Main topics include the deal’s financial aspects, antitrust risks and labor implications, among other issues. No major Delta creditors have publicly embraced the US Airways bid, and one of the largest creditors, the Air Line Pilots Association unit that represents pilots, ahs repeatedly attacked the proposal.
Despite long business relationships with Delta and its management, some major creditors such as Boeing Co., whose Boeing Capital Corp. unit leads the committee and holds claims in excess of $117.5 million, may feel obligated to insist on a full hearing of the offer, say people familiar with the situation. That could force the creditors committee to demand that Delta open its financial records and enter into full due diligence with US Airways, of Tempe, Ariz.
Delta has lobbied the Chicago aircraft maker for its support in warding off US Airways. People familiar with the discussions said Boeing has decided to remain neutral while the offer is being evaluated.
Separately, a federal judge upheld a bankruptcy judge’s decision permitting Delta to terminate its pension plan for its pilots. A group of 223 retired pilots had appealed the bankruptcy-court decision issued in September. The Pension Benefit Guaranty Corp. now becomes trustee of the plan and reached a deal with Delta last week in which it receives a $2.2 billion unsecured claim against the airline and $225 million in unsecured notes.
Delta Pilots Go on Offensive
See Story
There is no guarantee that U-S Airways' buyout offer of Delta Air Lines will ever be consummated
See Story
Court OKs Delta's pension terminations
See Story
Congress To Examine US Airways, Delta Merger
See Story
Delta buyout would force decision oh headquarter location
See Story
How metro Phoenix could hold on to a merged US Airways
See Story
Delta execs lobby board - Plan for reorganization also will be presented to airline's creditors as managers try to fend off takeover by US Airways
See Story
Delta board weighs US Air's offer
See Story
What would Delta-US Air merger look like?
U[UcTYWVVZV&urcm=y]See Story
UAL CEO Tilton Renews Call for Airline Consolidation, but Steers Clear of Merger Speculation
See Story
United and Continental Discussing Possible Merger
See Story
United, Continental in early merger talks – NYT
See Story
UAL, Continental in merger talks: WSJ - UAL has also has contacted management at Delta and the carrier's creditors committee
See Story
AirTran preparing offer for MidWest Air, WSJ says - UAL and Continental Airlines holding talks on a possible merger
See Story
Regards,
USA320Pilot
Delta board discusses US Airways bid: paper
See Story
Delta Board Weights US Air’s Offer
NEW YORK (WSJ) – The board of Delta air Lines Inc. met by conference call to discuss US Airways Group Inc.’s $8.5 billion hostile bid, but the directors aren’t expected to issue a formal position on the offer for several days, according to people familiar with the matter.
The meeting came as executives at Delta and its major creditors prepared for a new round of talks regarding the US Airways bid scheduled for tomorrow in New York. US Airways presented details of its offer, consisting of $4 billion in cash and about $4.5 billion in stock, nearly two weeks ago, in a session marked by occasionally tense exchanges between executives from the airlines.
Delta, which filed for Chapter 11 bankruptcy-court protection in September 2005, is expected to release early next week its reorganization plan for exiting from bankruptcy as a stand-alone company. Coming one month after US Airways launched the hostile offer, the Delta plan effectively will be the company’s counterproposal aimed at persuading its creditors not to support the US Airways bid.
The board vote is largely a formality, since there is nearly no possibility that Delta’s board would endorse the US Airways offer, according to people familiar with the situation. Delta officials, including Chief Executive Gerald Grinstein, have made repeated public assertions that Delta should emerge independently from bankruptcy early next year. He has resisted US Airways’ request for access to Delta financial records to perform due diligence on the offer.
Tomorrow’s meeting of creditors could increase pressure on Delta to open its books. The group of nine major creditors, who represent unsecured claim holders in Delta’s bankruptcy proceedings, is scheduled to hear presentations from their own advisers hired to evaluate the US Airways bid and an analysis of the offer by Delta. Main topics include the deal’s financial aspects, antitrust risks and labor implications, among other issues. No major Delta creditors have publicly embraced the US Airways bid, and one of the largest creditors, the Air Line Pilots Association unit that represents pilots, ahs repeatedly attacked the proposal.
Despite long business relationships with Delta and its management, some major creditors such as Boeing Co., whose Boeing Capital Corp. unit leads the committee and holds claims in excess of $117.5 million, may feel obligated to insist on a full hearing of the offer, say people familiar with the situation. That could force the creditors committee to demand that Delta open its financial records and enter into full due diligence with US Airways, of Tempe, Ariz.
Delta has lobbied the Chicago aircraft maker for its support in warding off US Airways. People familiar with the discussions said Boeing has decided to remain neutral while the offer is being evaluated.
Separately, a federal judge upheld a bankruptcy judge’s decision permitting Delta to terminate its pension plan for its pilots. A group of 223 retired pilots had appealed the bankruptcy-court decision issued in September. The Pension Benefit Guaranty Corp. now becomes trustee of the plan and reached a deal with Delta last week in which it receives a $2.2 billion unsecured claim against the airline and $225 million in unsecured notes.
Delta Pilots Go on Offensive
See Story
There is no guarantee that U-S Airways' buyout offer of Delta Air Lines will ever be consummated
See Story
Court OKs Delta's pension terminations
See Story
Congress To Examine US Airways, Delta Merger
See Story
Delta buyout would force decision oh headquarter location
See Story
How metro Phoenix could hold on to a merged US Airways
See Story
Delta execs lobby board - Plan for reorganization also will be presented to airline's creditors as managers try to fend off takeover by US Airways
See Story
Delta board weighs US Air's offer
See Story
What would Delta-US Air merger look like?
U[UcTYWVVZV&urcm=y]See Story
UAL CEO Tilton Renews Call for Airline Consolidation, but Steers Clear of Merger Speculation
See Story
United and Continental Discussing Possible Merger
See Story
United, Continental in early merger talks – NYT
See Story
UAL, Continental in merger talks: WSJ - UAL has also has contacted management at Delta and the carrier's creditors committee
See Story
AirTran preparing offer for MidWest Air, WSJ says - UAL and Continental Airlines holding talks on a possible merger
See Story
Regards,
USA320Pilot
