Mergers Could Follow Delta-US Airways
Whether or not US Airways manages to buy Delta Air Lines, more airline mergers could be on the way.
As it stands now, Delta's existing common shares are likely to end up worthless when it exits bankruptcy. In most bankruptcy cases, debtholders end up with new shares of the company. That's where the US Airways offer comes in: It is proposing to pay Delta's unsecured creditors $4 billion in cash and 78.5 million shares of US Airways stock after Delta emerges from bankruptcy.
Shares of US Airways Group Inc. rose $8.57, or 16.83 percent, to $59.50 Wednesday on the New York Stock Exchange. Delta Air Lines Inc. shares are traded over the counter.
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AP Business Writer Harry R. Weber contributed to this report from Atlanta.
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