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November 16, 2006
US AIRWAYS PROPOSES TO MERGE WITH DELTA
Transaction Valued at Approximately $8.0 Billion in Cash and Stock.
Consumers Will Have the Advantages of a Larger, Full-Service Provider with the Cost Structure of a Low-Fare Carrier.
US Airways Group, Inc. (NYSE: LCC) announced yesterday that it has made a merger proposal to Delta Air Lines, Inc. (OTC: DALRQ.PK) under which both companies would combine upon Delta’s emergence from bankruptcy. The proposal would provide approximately $8.0 billion of value in cash and stock to Delta’s unsecured creditors.
PHOTO: US Airways proposes an $8 billion takeover of bankrupt Delta Airlines on November 15, 2006. (Kamenko Pajic/UPI Photo)
The combination of US Airways and Delta would create one of the world’s largest airlines and would operate under the Delta name. Customers would benefit from expanded choice as well as the reach and services of a large-scale provider within the cost structure of a low-fare carrier. As a combined company, the “New” Delta would be the number one airline across the Atlantic and the second largest airline to the Caribbean. The New Delta would reach more than 350 destinations across five continents, including North and South America, Europe, Asia and Africa. In the U.S., the combination would create a leading competitor in the Eastern U.S. and an enhanced position in the Western U.S. The combined company would be the number one airline at 155 airports.
Edited & Posted by the Editor | 9:29 AM | Link to this Post
