US Airways willing to raise Delta bid: WSJ

A US Airways plane taxies past a Delta Airlines plane at Reagan National Airport in Washington November 15, 2006. US Airways Group Inc. may raise its hostile takeover offer for Delta Air Lines Inc. by $1 billion under certain conditions to win support from Delta creditors, according to a report in The Wall Street Journal.

CHICAGO (Reuters) - US Airways Group Inc. (LCC.N) may raise its hostile takeover offer for Delta Air Lines Inc. DALRQ.PK by $1 billion under certain conditions to win support from Delta creditors, according to a report in The Wall Street Journal.

Citing people familiar with the matter, the newspaper said US Airways would raise its offer, currently worth $10.2 billion, if the official committee of creditors demanded that Delta open itself to due diligence by US Airways.

A US Airways spokesman declined to confirm the press report, but said the company was in regular contact with Delta's creditors and would be until its offer expires on February 1.

A condition of US Airway's offer is the Delta's creditors would have to ask a bankruptcy judge to postpone a hearing next week on the airline's restructuring plan and agree to support the start of a formal antitrust review, according to the report.

US Airways, which increased its bid for Delta this month by about 20 percent, has given the company's creditors until February 1 to support it.

The airline wants creditors to ask Delta to postpone a key bankruptcy hearing and open its books so US Airways can take a closer look at Delta's financials.

Delta's management has resisted a merger with US Airways, saying the company can provide more value as a stand-along airline.

(Additional reporting by Jessica Hall)