US Airways takeover attempt of Delta

November 15th, 2006

New York, NY - US Airways proposed a $8 billion takeover of bankrupt Delta Air Lines this morning after an attempt at merger talks failed last month.

US Airways says would create the No. 1 trans-Atlantic carrier and its CEO has pushed for consolidation in the industry.

The overall airline sector surged after US Airways made its unsolicited cash and stock bid for Delta, which is operating in Chapter 11 bankruptcy protection.

Delta shares shot up 13 percent, while Delta jumped 7 percent in morning trade.

"This is not value that either of our companies can create independently," Parker said on a conference call. "If we wait for Delta to emerge from bankruptcy, it will be too late to maximize all the synergies."

US Airways. the No. 7 U.S. airline with over 35,000 employees, believes the combination will generate at least $1.65 billion in annual savings.

Delta, the No. 3 U.S. airline with over 47,000 workers, said Wednesday it intends to emerge from bankruptcy as a stand-alone carrier.