Wiskey Driver
Return of the Hub Raider
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- Aug 31, 2002
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CHICAGO, Jan 30 (Reuters) - US Airways Group's (LCC.N: Quote, Profile , Research) nearly $10 billion bid for bankrupt Delta Air Lines (DALRQ.PK: Quote, Profile , Research) is firm and so is the Feb. 1 deadline for Delta's creditors to respond, US Airways chief executive said on Tuesday.
Doug Parker said recent talk that US Airways has increased its offer by $1 billion is inaccurate and that he has not asked US Airways' board of directors to increase the bid.
But he stopped short of ruling out a higher bid.
"There's been speculation from an agitated group of (Delta) bond-holders," Parker said. "We are not commenting on that speculation." if(!CMSB_ID){var CMSB_ID=""} CMSB_ID+="013007_MIDART_editorschoice,";document.write('');Parker's comments on a conference all with analysts and reporters were among his most emphatic yet that US Airways' takeover offer is firm and will not be extended. Industry experts believe that if US Airways merges with Delta, other major airlines will quickly attempt their own mergers to remain competitive. </SPAN>
US Airways has given the official creditors' committee until Thursday to show its support for the takeover bid, currently worth $9.7 billion, by meeting certain conditions, including asking Delta to open its books to US Airways and postponing a key court hearing.
Delta's management has been resistant to the proposal, saying the airline is worth more as a stand-alone company and that a merger presents serious antitrust violations.
Earlier on Tuesday, Delta said it had received commitments for $2.5 billion in exit financing. bringing it one step closer to emerging from Chapter 11 protection.
Parker also said he had no intention of extending the deadline if the official committee of creditors does not respond.
"We have given a deadline of Feb. 1 (to) the official committee," Parker said. "They know exactly what they have to do, and they know if they don't do it, our proposal is gone."
With the deadline just two days away, Parker said there have been no requests from creditors to extend the Feb. 1 deadline and no meetings with the committee scheduled.
"It's in their court," he said. "We've told them exactly what they need to do. It's not a hard requirement."
WD.
Doug Parker said recent talk that US Airways has increased its offer by $1 billion is inaccurate and that he has not asked US Airways' board of directors to increase the bid.
But he stopped short of ruling out a higher bid.
"There's been speculation from an agitated group of (Delta) bond-holders," Parker said. "We are not commenting on that speculation." if(!CMSB_ID){var CMSB_ID=""} CMSB_ID+="013007_MIDART_editorschoice,";document.write('');Parker's comments on a conference all with analysts and reporters were among his most emphatic yet that US Airways' takeover offer is firm and will not be extended. Industry experts believe that if US Airways merges with Delta, other major airlines will quickly attempt their own mergers to remain competitive. </SPAN>
US Airways has given the official creditors' committee until Thursday to show its support for the takeover bid, currently worth $9.7 billion, by meeting certain conditions, including asking Delta to open its books to US Airways and postponing a key court hearing.
Delta's management has been resistant to the proposal, saying the airline is worth more as a stand-alone company and that a merger presents serious antitrust violations.
Earlier on Tuesday, Delta said it had received commitments for $2.5 billion in exit financing. bringing it one step closer to emerging from Chapter 11 protection.
Parker also said he had no intention of extending the deadline if the official committee of creditors does not respond.
"We have given a deadline of Feb. 1 (to) the official committee," Parker said. "They know exactly what they have to do, and they know if they don't do it, our proposal is gone."
With the deadline just two days away, Parker said there have been no requests from creditors to extend the Feb. 1 deadline and no meetings with the committee scheduled.
"It's in their court," he said. "We've told them exactly what they need to do. It's not a hard requirement."
WD.
