Here's some more info
Report: Delta board to meet Wednesday
Delta-NWA merger could come as soon as Wednesday
Report: Delta board to meet Wednesday
The airline's board plans to approve a merger proposal with Northwest Airlines at the meeting, the Financial Times reported.
Last update: February 15, 2008 - 4:56 PM
Delta Air Lines' board plans to meet Wednesday to approve a merger with Eagan-based Northwest Airlines, the Financial Times reported today on its website.
The financial newspaper, citing unnamed "people close to the matter," also said a meeting of Northwest's board may be called for the same day.
Late Friday, the airlines were negotiating with the Air Line Pilots Association in an effort to secure the union's support, the Financial Times said. But the paper said the two airlines have agreed to exchange Northwest's shares for those of Delta at little or no premium.
Delta-NWA merger could come as soon as Wednesday
by Martin Moylan, Minnesota Public Radio
February 15, 2008
A merger of Northwest and Delta airlines could be announced Wednesday. Meanwhile, Gov. Tim Pawlenty is reminding Northwest of commitments the airline has made to Minnesota.
St. Paul, Minn. — Citing unnamed sources, The Financial Times reports the Delta Air Lines board will meet Wednesday, February 20, to approve a merger with Eagan-based Northwest. The report also says Northwest's board may meet the same day. Neither airline would comment.
As a merger appears imminent, Gov. Tim Pawlenty's spokesman Brian McClung says the governor is once again reminding the airline about promises it made to keep its headquarters and hub in the Twin Cities.
"The governor trusts and expects those commitments will be honored. We're willing to make additional commitments to keep the hub at full operations and the headquarters in Minnesota," said McClung.
In return for past promises to keep its headquarters and hub here, Northwest has received about $450 million in loans and lease breaks from the Metropolitan Airports Commission.
Delta Air Lines (NYSEAL) ' board plans to meet on Wednesday to approve the US carrier's merger with rival Northwest Airlines (NASDAQ:NWAC) , people close to the matter said on Friday.
The two airlines have already shared their proposal with labour leaders and have been working toward securing their support. Late on Friday, those negotiations were still ongoing, the people said. Northwest may also call a board meeting for Wednesday, they said.
The two airlines have agreed to exchange Northwest shares for those of Delta at little or no premium, the people said.
Securing support of pilots and other workers would be a crucial victory for the carriers' executives, who are mindful that any deal would face stiffer opposition in Washington without endorsements from key employee groups.
The Air Line Pilots Association represents pilots at both Delta and Northwest. While each group has said it was open to consolidation, they are pushing for wage increases to unwind concessions they made to their airlines during their bankruptcies. They also want to resolve how their members will rank in the combined company's seniority list, which helps determines how much pilots are paid and what aircraft they fly.
While pilots cannot technically block two airlines from merging, they can help galvanise opposition. Delta was able to fend off a hostile bid from US Airways last year in part because of the pilots' co-operation with management.
Delta has a market value of about $7bn, including shares the company will issue to creditors as part of its agreement to exit bankruptcy. Northwest is worth about $5bn. Both carriers filed for protection from creditors in 2005 and emerged last year.
Delta and Northwest also still need to determine whether Air France-KLM, their mutual European ally, will invest in the combined company, the people said.
Neither company immediately returned calls seeking coment.