Bankruptcy Court Can Be Tough Venue for Hostile Takeovers
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US Airways Chief Executive Doug Parker faces a major handicap in his $8 billion bid to acquire unreceptive Delta Air Lines Inc.: Bankruptcy courts tend to be poor staging grounds for hostile takeovers. Unless Delta’s management can be persuaded to go along with the deal or its creditors stage a revolt in the bankruptcy court, US Airway’s bid is a longshot, bankruptcy experts said Wednesday. Delta has exclusive control over its Chapter 11 case through at least early February, and bankruptcy courts seldom overrule management when things are going smoothly. Mr. Parker “basically lobbed this Hail Mary pass up in … Source : online.wsj.com |