Delta May Make Run at US Airways
NEW YORK (
) --
Delta Airlines
(DAL) - Get Report
is
reportedly looking to gobble up some of its competition
.
According to
The Wall Street Journal
, the company is doing its homework on possibly making a bid to acquire
US Airways
(LCC)
, according to unnamed "people familiar with the matter."
The
Journal
article said
AMR Corp.
, the parent company of American Airlines that filed for bankruptcy protection in late November, could also end up a target of Delta, which is said to be working with
Goldman Sachs
(GS) - Get Report
and
Blackstone Group
(BX) - Get Report
as advisers.
Delta has yet to approach US Airways, the article said, as it's still mulling which deal makes the most sense for it from a strategic standpoint and which is more attractive from a regulatory standpoint.
Shares of Delta closed at $10.39, up 2.2%, while US Airways' stock finished at $8.18, enjoying a gain of 4.2% on the day. AMR, which now trades on the Pink Sheets, last transacted at 69 cents. US Airways' shares are down 23% in the past year, while Delta's stock is off 14%.
--
Written by Michael Baron in New York.
>To contact the writer of this article, click here:
Michael Baron
.
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.
