The Wall Street Journal-20080112-Delta Remains Mum on Merger Talks
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Delta Remains Mum on Merger Talks
Shares of U.S. airlines sagged Friday, after Delta Air Lines Inc. failed to shed further light on whether its board had authorized its chief executive officer to pursue merger talks with Northwest Airlines Corp., UAL Corp.'s United Airlines, or both.
Though Delta board members met Friday in New York, the Atlanta airline wouldn't confirm whether its executives will proceed with plans to begin discussions with either or both of the two other carriers. On Thursday, The Wall Street Journal's online edition reported that Richard Anderson, Delta's chief executive, would seek the board's permission to begin discussions with both airlines, with the intention of negotiating a merger with one of the two.
A Delta spokeswoman declined to comment on the meeting or what was discussed.
Investors on Friday took profits in airline stocks following the surge in share prices that followed the week's consolidation news. The Amex Airline Index Friday fell 3.6% to 31.53 points, with just one of its 14 components trading higher. On Thursday, the index surged about 12% with all of its components closing out the day with solidly higher prices. Friday, shares of Delta fell 3% to 15.48, Northwest slipped 0.25% to $15.81, and UAL was down 0.37% to $32.07.
