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US Airways withdraws Delta offer.


US Airways (NYSE: LCC) yesterday (31 January) withdrew its offer to merge with Delta Air Lines Inc (Other OTC: DALRQ).

US Airways said it was informed earlier in the day that the Official Unsecured Creditors' Committee would not meet its demands by the airline's deadline of 1 February 2007. US Airways' offer of USD5.0bn in cash and 89.5m shares of US Airways stock was set to expire on 1 February 2007 unless there was affirmative support from the Official Unsecured Creditors' Committee for commencement of due diligence, making the required filings under Hart-Scott-Rodino, as well as the postponement of Delta's hearing on its disclosure statement scheduled for 7 February 2007.

Chairman and CEO Doug Parker said US Airways is disappointed that the committee, which has been chosen to act on behalf of all Delta creditors, "is ignoring its fiduciary obligation to those creditors".

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Publication:Airline Industry Information
Article Type:Brief article
Date:Feb 1, 2007
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