Delta Air Lines, Northwest Airlines Confirm Merger Deal
April 14, 2008: 08:28 PM EST


DOW JONES NEWSWIRES
Delta Air Lines Inc. (DAL) and Northwest Airlines Corp. (NWA) late Monday confirmed that both carriers will combine in an all-stock transaction with a combined enterprise value of $17.7 billion, creating the nation's largest passenger carrier.
The transaction is expected to generate more than $1 billion in annual revenue and cost synergies and the company expects to incur one-time cash costs to not exceed $1 billion to integrate the two airlines.
The combined company expectst to boast liquidity of nearly $7 billion at closing.
Northwest shareholders will receive 1.25 Delta shares for each Northwest share they own, representing a premium to Northwest shareholders of 16.8% based on Monday's closing prices.
The transaction is expected to be accretive to current Delta shareholders in year one excluding one-time costs.
The merger is subject to the approval of Delta and Northwest shareholders and regulatory approvals and it is expected that the regulatory review period will be completed later this year. 0--



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