US Air sweetens bid for Delta
Share Now on:
US Air sweetens bid for Delta
TEXT OF STORY
SCOTT JAGOW: A couple weeks ago, the head of US Airways said he had no intention of offering more money for Delta Airlines. This morning, he offered more money for Delta Airlines. 20 percent more. Delta’s management is emphatically against this takeover. But it’s not really up to Delta’s management. More now from Dan Grech.
DAN GRECH: US Air’s bid this morning: $5 billion in cash and 89.5 million shares in stock. That means the new offer is worth $10.2 billion, nearly $2 billion more than was offered on November 15.
Professor Darryl Jenkins is with Embry Riddle Aeronautical University.
DARRYL JENKINS: Certainly this is a very, very generous offer. It’s in cash and stock so it’s pretty much a liquid offer. And they put a cutoff date on this to help people make up their minds.
The cutoff is February 1.
Because Delta is in bankruptcy, the carrier’s fate is largely out of its own hands. Jenkins says it’s the bondholders who will ultimately decide whether to take US Airways’ bid.
JENKINS: They get more now rather than less later. And I think at a certain point that becomes a very, very easy decision for any creditor.
Delta has one consolation: If the airlines combine, the carrier’s name will stay Delta.
In New York, I’m Dan Grech for Marketplace.
Stories You Might Like
There’s a lot happening in the world. Through it all, Marketplace is here for you.
You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible.
Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.
