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January 24, 2008 |
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UAL CORP: Commences Merger Talks w/ Delta Air & Northwest Air UAL Corp. and Northwest Airlines Corp. have engaged in formal merger talks with Delta Air Lines Inc., reports The Wall Street Journal. WSJ says Delta, which is in the early stages of discussions with both Northwest and UAL, hopes to reach an agreement with one of them over the next two weeks. Delta is anticipating a deal disclosure early as mid-February after Delta's board meeting scheduled early in the month, says the report. "A special committee of the board is working with management to explore strategic options, including potential consolidation transactions. However, we are not providing updates, while this process is ongoing," Delta spokeswoman Betsy Talton, said. Northwest and UAL declined to comment. A UAL-Delta or a Northwest-Delta merger, which would likely be a stock for stock transaction, would make Delta the largest airline in the world, according to reports. Experts in the airline industry, however, believe that a Northwest-Delta merger is more likely as Delta's Chief Executive Richard Anderson was previously CEO at Northwest, and is already well acquainted with Northwest's operations. Senator Johnny Isakson, a Georgia Republican, said that Mr. Anderson told him in December that if there's a merger or an acquisition, Delta would keep its name and Atlanta hub, Bloomberg News reports. About UAL Corp. Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) -- http://www.united.com/ -- is the holding company for United Airlines, Inc. United Airlines is the world's second largest air carrier. The airline flies to Brazil, Korea and Germany. The company filed for chapter 11 protection on Dec. 9, 2002 (Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in their restructuring efforts. Fruman Jacobson, Esq., at Sonnenschein Nath & Rosenthal LLP represented the Official Committee of Unsecured Creditors before the Committee was dissolved when the Debtors emerged from bankruptcy. Judge Wedoff confirmed the Debtors' Second Amended Plan on Jan. 20, 2006. The company emerged from bankruptcy protection on Feb. 1, 2006. * * * Fitch Ratings, on May 2007, affirmed the Issuer Default Ratings of UAL Corp. and its principal operating subsidiary United Airlines Inc. at B-. |
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