Delta and Private Equity Firm Might Buy AMR: Report

[Stocks-to-Watch]

Delta Airlines (DAL) is considering making a bid for AMR, the parent company of American Airlines, the Wall Street Journal is reporting today, citing multiple unnamed sources. Separately, private equity firm TPG is also mulling a bid, the WSJ reports. Delta shares are up 1.5%. AMR shares were delisted last week.

A bid wouldn’t likely happen for months, allowing AMR to restructure through the bankruptcy process and thus become more attractive to potential buyers.

Delta is already the largest airline in the world, and an offer would probably attract antitrust attention, although the Journal reports that Delta is confident it could win approval as long as it made some concessions. TPG has invested in airlines before, including helping turn around Continental Airlines in the 1990′s.



Original Article Source by Barrons.com