Delta Air Lines
restructured its investment in
, in a deal that also entitles the airline to raise its stake in the "name-your-own-price" Internet site.
Under the agreement, priceline, which is based in Norwalk, Conn., will also reduce the amount of preferred stock the company has outstanding by $280 million.
Delta holds 6 million shares of priceline's convertible preferred stock. The Atlanta-based airline will exchange that stock for 80,000 new priceline preferred shares. The new shares have a liquidation preference of $80 million. Delta will also receive warrants to purchase about 27 million priceline shares for $2.97 each, the closing price on Feb. 6.
On Dec. 28, priceline announced the
resignation of founder and chairman Jay Walker from its board, soon after the company set plans to cut 11%
of its workforce.
Shares of Delta were lately up 10 cents, or 0.2%, to $45.80 on the
New York Stock Exchange
, while priceline recently gained 19 cents, or 7%, to $2.88 in