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Delta, Northwest Approve Merger

Posted Apr 14, 08 7:17 PM CDT in Business 

(Newser) – Delta and Northwest Airlines execs agreed today to merge their companies into the world's largest airline, the New York Times reports. Delta CEO Richard Anderson will lead the new company, called Delta, if Northwest shareholders approve the transaction. The $3.1 billion deal would give Northwest shareholders 1.25 Delta shares for each outstanding Northwest share, a 17% premium from Monday's closing prices.

If approved, the deal will put seven Delta and five Northwest board members on the new board, alongside one from the Air Line Pilots Association. Northwest board member Roy J. Bostock will act as vice chairman while Northwest CEO Douglas Steenland sits on the board with no influence on daily operations. The deal, sparked by rising fuel prices, was not approved by the companies' 11,000 pilots.

Sources New York Times, Wall Street Journal

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A Delta Airlines jet departs Hartsfield Jackson Atlanta International Airport in Atlanta Monday, April 14, 2008.   (AP Photo/John Bazemore)
Northwest Airlines and Delta flights are listed on the monitor at the Minneapolis St. Paul International Airport in Minneapolis, Monday April 14, 2008.   (AP Photo/Andy King)
Northwest Airlines Corp. chief executive officer Doug Steenland speaks at Detroit Metropolitan Airport in Romulus, Mich. in this Oct. 11, 2006 file photo.   (AP Photo/Paul Sancya, file)
A Delta Airlines jet taxis at the Cincinnati/Northern Kentucky International Airport, in a file photo from April 13, 2006, in Hebron, Ky.   (AP Photo/Al Behrman, File)
Delta Airlines Chief Executive Officer Richard Anderson testifies on Capitol Hill in Washington, Thursday, Nov. 15, 2007.   (AP Photo)
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merger  • United Airlines  • fuel costs  • Northwest Airlines  • Continental Airlines  • Delta Airlines


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