While US Airways Hostile Bid Seems To Lose Steam

Creditors at bankrupt Delta Air Lines, still fearful of a US Airways hostile takeover bid, have reportedly turned up the heat on a proposed Delta-Northwest merger, according to the Wall Street Journal.

Meanwhile, the opposition to US Airways' recently upped offer to buy out Delta is seeing more and more opposition.

A rally held on Tuesday, January 22 by group made up of Delta pilots, board council members, retirees, employees and elected officials sought to garner attention before a scheduled Senate Commerce Committee hearing scheduled for Wednesday.

Members of the group wanted congressmen to know 104,851 people have signed a petition opposing US Airways' bid by signing a statement that read in part, "I oppose US Airways' hostile takeover bid for Delta Air Lines because it would be bad for everyone. Bad for consumers -- who want to keep low fares and great service; bad for small communities and businesses -- who want to keep competition and growing worldwide access and convenience; and bad for Delta people - -- who want to keep their jobs and their hard-earned benefits."

The statement suggests US Airways' defaulted on its pension obligations to find the money for a hostile takeover bid of Delta.

Despite the growing opposition to the merger, US Airways' CEO Doug Parker won't comment on whether his airline will increase its just-over-$10 billion bid; already bumped from the airline's original offer of just over $8 billion.

According to an Associated Press report, Parker is counting on the fact that Delta's unsecured creditor committee -- sure to play a key role in any merger agreement -- has not indicated it's looking for more money.

If these reports are accurate, he may be right -- those creditors may be talking to Northwest instead.

FMI: www.delta.com, www.nwa.com, www.usairways.com