TEMPE - US Airways Group, Inc. has added Morgan Stanley as a lead underwriter of its proposed takeover of Delta Air Lines, Inc.
Morgan Stanley joins Citigroup as the underwriters committed to providing $7.2 billion in debt financing for the hostile takeover, which is opposed by Delta management.
The new financing commitment has been revised to provide improved terms, US Airways announced Monday. Citigroup and Morgan Stanley will share the funding commitment, subject to approval by the airline's board of directors. US Airways has the right to add more institutions to the group financing the proposed deal.
Tempe, Ariz.-based US Airways made the unsolicited $8.5 billion bid for Delta, which is trying to emerge from bankruptcy, on Nov. 15.
Delta has filed a reorganization plan that calls for it to emerge from bankruptcy as a stand-alone company by the middle of this year.