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US Airways Group Inc has strongly denied rumors that it will be increasing the bid for the hostile takeover of Delta Air Lines Inc by $1 billion in a $9.87 billion cash-and-stock offer. Phil Gee, a US Airways spokesman, said that his company will not be increasing the bid and the current bid stands till it expires on February 1. "We have not raised our bid. The previous offer is still on the table and is set to expire Feb. 1", he said. The latest denial comes after reports in the Wall Street Journal had said that the Arizona-based airline will be increasing the bid in order to win support from its creditors. It also reported that the bid will be increased only if Delta's creditors agreed to postpone a February 7 hearing on restructuring the carrier. However Gee said that increasing the bid was possible only if approved by the governing board and the Securities and Exchange Commission was notified. US Airways has been desperate to takeover the Atlanta-based Delta Air Lines Inc but the road has not been smooth with the airline filing for bankruptcy.
Delta has last said that it wanted to come out of the bankruptcy protection as a stand-alone company, a stand that had been strongly supported by a committee representing creditors. However on Monday, another committee comprising unsecured creditors had urged the official committee to accept the US Airways offer. Delta has already rejected an initial offer by the US Airways on November 15 last year only for its rival to comeback with an increased offer of $10.2 billion early this month.
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