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Last Updated: Wednesday, 10 January 2007, 21:47 GMT
US Airways raises offer for Delta
Delta Air Lines planes
Delta has said it will look into the revised unsolicited offer
US Airways has raised its hostile offer to buy Delta Air Lines for $10.2bn (5.2bn), after Delta rejected a previous $8bn bid in December.

The offer is 20% higher than last month's offer and aims to create a merger of the two firms.

The management of Delta, however, wants the firm to emerge from bankruptcy protection as a stand-alone entity.

Delta has said it will fulfil its duty to review the revised "unsolicited merger proposal".

'Significant concerns'

According to a statement by US Airways, the new offer values Delta at between $12.7bn and $15.4bn, in comparison with $9.4bn and $15.4bn as defined under Delta management's proposal.

"It is time for this process to move forward," said US Airways chairman and chief executive Doug Parker.

He added: "We continue to believe that this is the right time to create a better airline that provides more choice to consumers, increased job security for both airlines' employees."

Delta, however, argues that the new proposal fails to take into account "significant concerns that have been raised about the initial US Airways proposal and would increase the debt burden of the combined company by yet another $1bn."

The new offer, which expires on 1 February, would give Delta creditors $5bn in cash - up from $4bn - and 89.5 million US Airways shares, up from 78.5 million shares.

Delta hopes to emerge from bankruptcy in the next six months as an independent airline.


SEE ALSO
Delta rejects US Airways merger
19 Dec 06 |  Business
Delta 'cautious' over $8bn merger
15 Nov 06 |  Business
US Airways results beat forecasts
21 Feb 06 |  Business
Delta pilots agree to 14% pay cut
28 Dec 05 |  Business
US Airways and America West merge
28 Sep 05 |  Business
Delta to shed up to 9,000 workers
22 Sep 05 |  Business

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