This Deal Should Die

I’m increasingly convinced that the US Scareways Deal is bad for Delta and Georgia.

US Airways has no intention right now to increase its $8.4 billion offer for Delta Air Lines and it can’t see itself backing out of its pursuit of Delta for any reason, Chief Executive Doug Parker said Thursday.

In a wide-ranging telephone interview with Associated Press reporters, Parker said Tempe, Ariz.-based US Airways Group Inc. firmly believes that its offer for Atlanta-based Delta Air Lines Inc. provides more value than Delta’s stand-alone plan.

“We believe our offer is more than fair and don’t feel any need to amend it at this point,” Parker said.

At the same time, Parker did not exactly rule out the possibility of changing his mind about the offer price.

US Scareways reportedly is still having problems with the full merger of its last acquisition. Adding Delta to the mix would be a lot.

Technorati Tags: Delta, merger, US Airways

2 comments

  1. Jeff Emanuel says:

    Delta is also predicting that its worth will be over $12B when it emerges from bankruptcy — something which US Airways wants to hear, but doesn’t want anybody else to.

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