US Airways has announced a proposal to merge with Delta Air Lines. The transaction is valued at approximately $8.0 billion in cash and stock.
This merger offer was first unofficially floated to Delta during the summer. An official proposal came in September. But since Delta had no interest in this hostile takeover attempt USAir decided to make the announcement public.
Twice-bankrupt US Airways still hasn’t put their financial house back together after the America West/US Airways merger of 2005.
Delta CEO Gerald Grinstein has said, as recently as October 31, that “Delta has no plans for discussions with any airline – or with any party representing any airline — about a potential merger or acquisition. And our intent remains for Delta to exit bankruptcy as an independent, stand-alone company — not as a merged, or acquired or otherwise consolidated airline.”
As someone that is an employee of Delta Air Lines I have but this to say:
US Airways, merger, hostile takeover, USAir, Delta Air Lines
