Wed, Jan 24, 2007
While US Airways Hostile Bid Seems To Lose Steam
Creditors at
bankrupt Delta Air Lines, still fearful of a US Airways
hostile takeover bid, have reportedly turned up the heat on a proposed Delta-Northwest
merger, according to the Wall Street Journal.
Meanwhile, the opposition to US Airways' recently upped offer to
buy out Delta is seeing more and more opposition.
A rally held on Tuesday,
January 22 by group made up of Delta pilots, board council members,
retirees, employees and elected officials sought to garner
attention before a scheduled Senate Commerce Committee hearing
scheduled for Wednesday.
Members of the group wanted congressmen to know 104,851 people
have signed a petition opposing US Airways' bid by signing a
statement that read in part, "I oppose US Airways' hostile takeover
bid for Delta Air Lines because it would be bad for everyone. Bad
for consumers -- who want to keep low fares and great service; bad
for small communities and businesses -- who want to keep
competition and growing worldwide access and convenience; and bad
for Delta people - -- who want to keep their jobs and their
hard-earned benefits."
The statement suggests US Airways' defaulted on its pension
obligations to find the money for a hostile takeover bid of
Delta.
Despite the growing
opposition to the merger, US Airways' CEO Doug Parker won't comment
on whether his airline will increase its just-over-$10 billion bid;
already bumped from the airline's original offer of just over $8
billion.
According to an Associated Press report, Parker is counting on
the fact that Delta's unsecured creditor committee -- sure to play
a key role in any merger agreement -- has not indicated it's
looking for more money.
If these reports are accurate, he may be right -- those
creditors may be talking to Northwest instead.
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