US Airways mum on report on Delta offer |
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Mon, 29 Jan 2007 19:13
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PHOENIX (AFX) - US Airways Group Inc. wouldn't comment Monday about reports it offered to add $1 billion in cash to its $9.67 billion cash-and-stock bid for Delta Air Lines Inc. in order to win support from its creditors.Citing people familiar with the matter, the Wall Street Journal said Monday that Tempe, Ariz.-based US Airways would raise its bid if Delta's creditors, who have the most say in the bankruptcy-protected airline's fate, agreed to postpone a Feb. 7 hearing on restructuring the carrier.US Airways spokeswoman Valerie Wunder would not confirm the report.'Our advisers are in regular contact with (Delta's) ad hoc committee, and the advisers to the creditors committee,' Wunder said. 'We expect this will continue as the Feb. 1 deadline on our offer to continue the process approaches. However, we are not going to comment on the specifics of any conversation.'US Airways spokesman Phil Gee said the carrier has not officially decided to change its offer. If it did, Gee said, the company would have to notify the Securities and Exchange Commission.US Airways has been seeking postponement of the reorganization hearing, and has threatened to withdraw its bid if the hearing isn't delayed by Thursday.In November, US Airways launched a hostile takeover effort to buy Atlanta-based Delta, which is under bankruptcy court protection from creditors. A committee representing creditors hasn't said anything publicly since US Airways sweetened its offer earlier this month.Previously, the committee supported letting Delta reorganize and emerge from bankruptcy protection as a stand-alone company.The Journal said some of Delta's creditors approached US Airways late Friday, suggesting US Airways up its bid by more than $2 billion. It isn't known whether the increased bid has swayed any creditors on the committee, the newspaper said.Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Delta to discuss US Airways' bid 