U.S. News

US Airways Willing to Boost Delta Offer: CNBC's Faber


US Airways Group is willing to add $1 billion to its $9.67 billion offer for Delta Air Lines  if Delta's creditors committee agrees to discuss a merger of the two carriers, CNBC's David Faber reported, citing sources close to US Air.

US Air also would be willing to pay a termination fee to Delta's creditors if the Justice Department ends up blocking a proposed merger, Faber said.

Sources close to US Airways told Faber that Delta's creditors committee has until Thursday to respond to US Airways' offer before the carrier withdraws the bid.

US Airways also wants Delta's creditors to postpone a Feb. 7 reorganization hearing for Delta.

US Airways Raising Delta Bid

US Airways spokesman Phil Gee told the Associated Press that the carrier has not officially decided to change its offer. If it did, Gee said, the company would have to notify the Securities and Exchange Commission.

In November, US Airways launched a hostile takeover effort to buy Atlanta-based Delta, which is under bankruptcy court protection from creditors. A committee representing creditors hasn't said anything publicly since US Airways sweetened its offer earlier this month.

Previously, the committee supported letting Delta reorganize and emerge from bankruptcy protection as a stand-alone company.

The Wall Street Journal reported that some of Delta's creditors approached US Airways late Friday, suggesting US Airways up its bid by more than $2 billion. It isn't known whether the increased bid has swayed any creditors on the committee, the newspaper said.