Jeff Bailey at the New York Times has a story today that says:

“Pardus Capital Management, a New York hedge fund, has sent a letter to management of Delta Air Lines asking it to seek a stock-for-stock merger with UAL, the parent of United Airlines, in a deal that would create the world’s largest airline and could prompt sweeping consolidation in the airline industry.

Gordon M. Bethune, former chief executive officer of Continental Airlines, is working with Pardus, the hedge fund said in the letter. And consultants have identified $585 million in savings the two big airlines — currently Nos. 2 and 3 in the country — could realize by combining operations.

Pardus said in its letter, sent Tuesday night, that it owns seven million Delta shares, about a 2.6 percent stake.”

Well, well, on that note, I think I’m off to get some lunch. This is too much to take on an empty stomach. You can access the entire story at the above link, although it does require you to register at the New York Times.



Ticker: (UAL:NYSE), (DAL:NYSE)

Technorati Tags: Delta Air Lines, United Airlines