AMERICAS: Delta merger under consideration

Delta Air Lines has said its board has established a special committee to review the carrier’s strategic options, including "potential consolidation transactions." This emerged after a key shareholder – Pardus Capital Management, which owns 1.25 per cent of Delta’s shares, urged it to merge with United Airlines. Pardus said it was "imperative" for the carrier […]


Delta Air Lines has said its board has established a special committee to review the carrier’s strategic options, including "potential consolidation transactions." This emerged after a key shareholder – Pardus Capital Management, which owns 1.25 per cent of Delta’s shares, urged it to merge with United Airlines.

Pardus said it was "imperative" for the carrier to merge with another carrier because of the rapid rise in fuel prices and the associated business risk of operating as a singular entity. Pardus also holds shares in UAL Corp.

Delta, which emerged from bankruptcy earlier this year after fending off a hostile takeover bid by US Airways, said recently that it is considering selling off its regional subsidiary Comair.