US Airways, Delta merger under consideration
New York: US Airways Group has come out with a proposal to merge with Delta Airlines to create the number one trans-Atlantic carrier.

Delta creditors would receive $4 billion in cash and 78.5 million shares of US Airways stock with an aggregate value of around $4 billion based on Tuesday's closing stock price.

US Airways believes that the combination will generate at least $1.65 billion in annual synergies.

The combined company, which would operate under the Delta name, would be the No. 1 carrier across the Atlantic and the second-largest to the Caribbean, US Airways said.
Back to News Review index page  

Hertz IPO raises $1.32bn
New York: Car rental company Hertz Global Holdings Inc. has raised $1.32 billion in one of the largest initial public offerings of the year. A year ago private equity firms acquired the company. The offering of more than 88 million shares, which represents about a 27.5 percent stake in the company, sold for $15 per share as against an expected rate of $16-to-$18. The offering price gives the company a market value of $4.8 billion.

Hertz, which also owns one of the largest equipment rental businesses in the United States, will use net proceeds from the offering to repay debt and for general corporate purposes, according to its prospectus filed with the Securities and Exchange Commission.
Back to News Review index page