Bankrupt Delta scoffs at U.S. Airways' takeover bid

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By Jim Jelter, =

Bankrupt Delta scoffs at U.S. Airways' takeover bid=0A=0A=0ABy Jim Jelter, =
MarketWatch=0ALast Update: 6:01 PM ET Nov 30, 2006=0A=0ASAN FRANCISCO (Mark=
etWatch) -- Delta Air Lines Inc. emerged Thursday from a lengthy meeting wi=
th U.S. Airways Group Inc. unconvinced that U.S. Airways' $8.5 billion host=
ile takeover bid is the best course for the struggling airline.=0A GET QUOT=
ES=0A Enter one or more symbols=0A        =0A=0AQuotes delayed up to 20 Min=
utes=0A=0A=0A=0A=0A=0A RELATED QUOTES=0A=0A DALRQ1.33 +0.06  =0A=0A LCC56.7=
6 0.00  =0A=0A AMR31.96 +0.07  =0A=0A=0A=0A=0A=0A=0A Top MarketWatch=0A Hea=
dlines=0A=0AStrategists search for keys to 2008 election=0A=0AAfter Alcatel=
-Lucent combo, smaller mergers called more likely=0A=0AThursday's biggest s=
tock gainers and decliners=0A=0A=0A=0A=0A=0A=0ADelta (DALRQ: news) executiv=
es and creditors of the airline, which is operating under bankruptcy protec=
tion, spent much of the day listening to U.S. Airways (LCC: news) pitch the=
 merits of its Nov. 15 cash-and-stock offer for the Atlanta-based airline. =
See full story.=0A"While we will fulfill this [review] obligation, we will,=
 as we have stated, continue to progress toward filing our stand-alone plan=
 by the end of the year, which would have us emerge from bankruptcy as a hi=
ghly competitive, independent and financially sound airline by mid-2007," D=
elta said in a statement.=0A"Our plan is working and we have tremendous, ha=
rd-won confidence in it," the company added.=0ADelta tumbled into bankruptc=
y in September 2005, financially crushed by soaring labor and pension costs=
, higher jet-fuel prices, and stiff competition from low-cost carriers.=0AT=
empe, Ariz.-based U.S. Airways, having recently emerged from bankruptcy its=
elf after combining forces with America West, launched its bid for Delta ea=
rlier this month, attempting to snare Delta before it emerges from bankrupt=
cy.=0AUndeterred, U.S. Airways Chairman and CEO Doug Parker offered his own=
 post-meeting assessment. =0A"We were pleased to have made a presentation t=
o both Delta and its creditors about what we believe are the compelling and=
 unique benefits of our plan," Parker said in a U.S. Airways statement.=0A"=
We reviewed our offer and had a chance to engage in discussions on the many=
 facets of this proposal. While we recognize the steps that Delta managemen=
t has taken, we are confident that our proposal for a 'New' Delta will crea=
te more value than a stand-alone plan."=0AIf U.S. Airways were to prevail, =
the combined airline would be the biggest in the country, eclipsing current=
 No. 1 AMR Corp. (AMR: news) , parent of American Airlines. =0AEarlier Thur=
sday, Delta reported that it had narrowed its October operating loss to $88=
 million from a year-earlier $301 million. See full story.=0ADelta cut capa=
city in October by 4.5%, restructuring its mix of domestic and internationa=
l flying, and reduced its operating expenses by 6.9%. Revenue grew by 15.1%=
 from October 2005, compared with an industry average of 6.2%, the carrier =
said. =0A=0AJim Jelter is Industrials Editor for MarketWatch in San Francis=
co.

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