Delta Air Lines and Comair have taken steps to smooth the major's proposed acquisition of the Cincinnati-based regional with an agreement-in-principle to settle litigation started by some Comair shareholders.
The Atlanta-based airline says the agreement-in-principle has been reached to avoid the "burden, expense and distraction" of further litigation.
The two carriers have amended the terms of the initial acquisition agreement to delete a clause entitling Delta to a $50-million termination fee if Comair accepted a superior offer for its share, or in "certain other" circumstances.
Delta, which already holds a 22% stake in the Delta Connection operator, announced its proposed $1.8-billion purchase of the remainder of the airline last month. On 10 November the waiting period applicable to the acquisition under the Hart-Scott-Rodino Antitrust Improvements Act expired.
Source: Flight Daily News
