Quoting Marilyn Adams, USAToday: Showing frustration, US Airways CEO Douglas Parker said Tuesday that his company will drop its bid for Delta Air Lines on Thursday if bankruptcy creditors don't signal support for the $10 billion offer.
Delta's creditors "know exactly what they have to do," Parker said in a conference call on quarterly earnings. "If this (creditors) committee is not willing to do what it should do for investors ... we're not willing to pursue this transaction anymore."
Although Parker had earlier placed a Feb. 1 deadline on his offer, his comments suggested for the first time that US Airways (LCC) may be poised to walk away from the deal it proposed in mid-November and sweetened earlier this month.
Parker's comments followed days of frantic maneuvering by people on all sides of the controversial bid. US Airways' cash-and-stock offer for Delta, which has been in Chapter 11 reorganization since September 2005, has been rejected by Delta's management. Delta has lobbied its creditors to accept Delta's own plan to emerge as a stand-alone carrier. A merger would create the country's biggest domestic carrier.
Parker sweetened the offer for Delta by 20% three weeks ago, and the court-approved committee representing Delta's creditors hasn't responded. The committee could act today. Parker wants the creditors to force Atlanta-based Delta to open its books and postpone a bankruptcy court hearing scheduled for next Wednesday on Delta's stand-alone plan.
Doug Parker sounds VERY frustrated, and I think he is starting to concede he made a gross miscalculation, and perhaps should have gone after NW.
DELTA Air Lines; The Only Way To Fly from Salt Lake City; Let the Western Heritage always be with Delta!