Parker Fires Back at Delta

US Airways(LCC Quote) CEO Doug Parker argued Thursday that Delta Air Lines(DALRQ Quote) has overstated its value in its effort to resist a hostile takeover.

"Something here looks a little out of whack, to say it politely," he said during an online conference with analysts. Parker responded to the case, which Delta laid out earlier this week, that the US Airways bid is undervalued, unlikely to receive regulatory approval and illegal under its pilot contract.

Parker said Delta's self-valuation of $9.4 billion to $12.2 billion would mean the airline, at the high end, is worth nearly as much as Southwest(LUV Quote) or as United(UAUA Quote) and American(AMR Quote) combined.

The valuation "clearly lacks credibility," he said. For Delta's stock to reach a range implied by the valuation, based on expected 2007 profits, the company would sport a price-to-earnings ratio of 20.6 to 26.3, he said. ...