Delta US Air merger update!

CarolA

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USAir packed thier bags and went home! (Of course with thier baggage handlers the bags will be lost on the way back to Tempe, but that's their problem!)

From AJC.com

Delta strategy pays off with victory
Hostile bid by US Airways fails

By RUSSELL GRANTHAM
The Atlanta Journal-Constitution

Published on: 02/01/07

Delta Air Lines' two-month effort to present a loud, united front against a hostile takeover bid paid off in victory Wednesday.

US Airways withdrew its $10 billion merger proposal — a deal that threatened to move Delta's headquarters to Arizona — after Delta's major bankruptcy creditors refused to get behind the bid.




The creditors' decision came after an efficient campaign by Delta to torpedo the offer both publicly and behind the scenes.

Publicly, employee groups voiced vehement opposition through rallies and "Keep Delta My Delta" buttons. The airline also enlisted political allies who raised questions about whether a merger would survive scrutiny by federal regulators. Both tactics were designed to plant doubts in creditors' minds.

Behind the scenes, the hostile bid lit a fire under Delta's effort to put forth a standalone reorganization plan that the creditors would like better than the merger offer. Delta lined up $2.5 billion in exit financing from six big Wall Street firms, announcing the arrangement just 48 hours before the creditors committee had to make a decision.

Airline experts said Delta's 74-year-old chief executive, Gerald Grinstein, should get credit for rallying Delta — riven by hard times, job cuts and executive pay controversies in recent years — around the cause of independence.



I was never in favor of this. USAir has not yet managed to deal with the issues from the LAST merger. So I guess rather then deal with those issues they figured it would take the attention off that by doing another one. :lmao:
 

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