December 29, 2006
US Airways has no immediate plans to boost or back off from its offer to buy Delta Air Lines, despite the bankrupt carrier's resistance, US Airways' chief executive said on Thursday.
"We believe our offer is more than fair and don't feel any need to amend it at this point," Doug Parker said in comments to the Associated Press. "We think this is such a unique opportunity that we have an obligation to pursue it and because of that obligation we will pursue it."
Company spokesman Phil Gee confirmed the comments.
In November, US Airways offered to buy Delta for USD$4 billion in cash and 78.5 million shares.
Last week, Delta rejected the bid and presented a stand-alone plan that it says values it at between USD$9.4 billion and USD$12 billion, topping US Airways' USD$8.3 billion offer.
US Airways is pressed for time to win support from Delta's creditors before Delta exits bankruptcy. US Airways needs creditors to push Delta into opening up its books so that it can perform due diligence, a condition of its offer.
Delta plans to have a hearing on February 7 to begin seeking approval from creditors to exit bankruptcy as an independent carrier.
At the hearing, Delta's creditors are expected to vote on the carrier's disclosure statement, which details its restructuring proposal. If the statement is approved, the company's creditors will proceed to vote on the restructuring proposal. The process could take several weeks.
(Reuters)