Takeover Bid Process starts

[WSurf]

NEW YORK (Reuters) - Some bondholders of bankrupt airline Delta Air Lines Inc. have begun organizing an informal group to support US Airways Group Inc.'s $8.78 billion takeover offer, the Wall Street Journal reported on its Web site on Wednesday.

That could help the bid overcome initial opposition from the Atlanta carrier's management and skepticism from some of its larger creditors, the paper said.

In conference calls yesterday with Deutsche Bank AG and Lehman Brothers Holdings Inc. , bondholders were urged to band together to pressure Delta to fully consider the bid from US Airways, the paper said.

The effort by both banks, which are Delta creditors, is aimed at creating a second group of creditors with some say in the airline's restructuring, it said.

Copyright 2006 Reuters

 

[80for80]

This give the takeover even more momentum. Looks like it's inevitable now. I'd hate to be junior at Delta.

 

[FmrFreightDog]

This give the takeover even more momentum. Looks like it's inevitable now. I'd hate to be junior at Delta.

As opposed to what? Old, senior, bitter, and PO'ed at the world at Eagle? Loser.

 

[General Lee]

NEW YORK (Reuters) - Some bondholders of bankrupt airline Delta Air Lines Inc. have begun organizing an informal group to support US Airways Group Inc.'s $8.78 billion takeover offer, the Wall Street Journal reported on its Web site on Wednesday.

That could help the bid overcome initial opposition from the Atlanta carrier's management and skepticism from some of its larger creditors, the paper said.

In conference calls yesterday with Deutsche Bank AG and Lehman Brothers Holdings Inc. , bondholders were urged to band together to pressure Delta to fully consider the bid from US Airways, the paper said.

The effort by both banks, which are Delta creditors, is aimed at creating a second group of creditors with some say in the airline's restructuring, it said.

Copyright 2006 Reuters

Wsurf, your title here is wrong. First of all, some of the bondholders can see that they are not being heard, since the creditor committe seems to be leaning towards a stand alone carrier. Most of the committee members are DL friendly, and that worries some bondholders. They "aim at creating a second group with SOME SAY in the airline's restructuring." Read the last sentence. They think they HAVE NO SAY, so they need to rally to try to have a voice. That says volumes. Read it again. They know DL management and LARGER CREDITORS are against a merger with USAir. DALPA is the largest unsecured creditor, and the others--including Boieng, Coke, Pratt, etc are also friendly to DL. I am sure the bondholders are desperate.


Bye Bye--General Lee

 

[General Lee]

This give the takeover even more momentum. Looks like it's inevitable now. I'd hate to be junior at Delta.

Bitter indeed. The flow down must have bumped you to a junior spot. Kinda sad.


Bye Bye--General Lee