AP
US Airways Denies Report on Delta Offer
Monday January 29, 7:05 pm ET
By Chris Kahn, Associated Press Writer
US Airways Denies Report That It Will Up Offer for Delta
PHOENIX (AP) -- US Airways Group Inc. on Monday denied reports it offered to add $1 billion in cash to its $9.87 billion cash-and-stock bid for Delta Air Lines Inc. in order to win support from its creditors.
"We have not raised our bid," US Airways spokesman Phil Gee said. "The previous offer is still on the table and is set to expire Feb. 1."
The Wall Street Journal had reported that Tempe, Ariz.-based US Airways would raise its bid if Delta's creditors, who have the most say in the bankruptcy-protected airline's fate, agreed to postpone a Feb. 7 hearing on restructuring the carrier.
Gee said that report was false. He added the airline couldn't officially change its offer unless its governing board approved it, which it hasn't, and the Securities and Exchange Commission was notified.
US Airways has been seeking postponement of the reorganization hearing, and has threatened to withdraw its bid if the hearing isn't delayed by Thursday.
In November, US Airways Group Inc. launched a hostile takeover effort to buy Atlanta-based Delta Air Lines Inc., which is under bankruptcy court protection from creditors. A committee representing creditors hasn't said anything publicly since US Airways sweetened its offer earlier this month.
Previously, the committee supported letting Delta reorganize and emerge from bankruptcy protection as a stand-alone company.
Shares of US Airways rose $2.30, or 4.41 percent, to close at $54.43 on the New York Stock Exchange Monday.
Looks like the ad hoc committee will do anything to get something going. They know the official committee hasn't agreed to Parker's new deal yet, and they want them to think about it. The ad hoc committee, or unofficial committee, could see the lack of enthusiasm and silence from the official committee, and they created rumors to get things possibly moving. I wonder if Parker will keep that Feb 1st drop dead date?
US Airways Denies Report on Delta Offer
Monday January 29, 7:05 pm ET
By Chris Kahn, Associated Press Writer
US Airways Denies Report That It Will Up Offer for Delta
PHOENIX (AP) -- US Airways Group Inc. on Monday denied reports it offered to add $1 billion in cash to its $9.87 billion cash-and-stock bid for Delta Air Lines Inc. in order to win support from its creditors.
"We have not raised our bid," US Airways spokesman Phil Gee said. "The previous offer is still on the table and is set to expire Feb. 1."
The Wall Street Journal had reported that Tempe, Ariz.-based US Airways would raise its bid if Delta's creditors, who have the most say in the bankruptcy-protected airline's fate, agreed to postpone a Feb. 7 hearing on restructuring the carrier.
Gee said that report was false. He added the airline couldn't officially change its offer unless its governing board approved it, which it hasn't, and the Securities and Exchange Commission was notified.
US Airways has been seeking postponement of the reorganization hearing, and has threatened to withdraw its bid if the hearing isn't delayed by Thursday.
In November, US Airways Group Inc. launched a hostile takeover effort to buy Atlanta-based Delta Air Lines Inc., which is under bankruptcy court protection from creditors. A committee representing creditors hasn't said anything publicly since US Airways sweetened its offer earlier this month.
Previously, the committee supported letting Delta reorganize and emerge from bankruptcy protection as a stand-alone company.
Shares of US Airways rose $2.30, or 4.41 percent, to close at $54.43 on the New York Stock Exchange Monday.
Looks like the ad hoc committee will do anything to get something going. They know the official committee hasn't agreed to Parker's new deal yet, and they want them to think about it. The ad hoc committee, or unofficial committee, could see the lack of enthusiasm and silence from the official committee, and they created rumors to get things possibly moving. I wonder if Parker will keep that Feb 1st drop dead date?
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