Delta rejects US Airways offer

NEW YORK (CNNMoney.com) -- Delta Air Lines formally rejected the hostile bid from US Airways Group early Tuesday, saying that the Atlanta-based carrier is worth more as a stand-alone carrier and that regulators are unlikely to approve the combination.

Since US Air made its $8.4 billion stock and cash bid for Delta on Nov. 15, Delta management has stated that it intends to emerge from bankruptcy as an independent carrier.

Tuesday's statement from Delta says that its financial advisor, The Blackstone Group, has estimated that Delta will be worth about $9.4 billion to $12 billion when it emerges from bankruptcy. It said it plans to emerge from bankruptcy in the spring of 2007, but said that emergence would be delayed until 2008 if the merger went forward.

The company also said that there are 2,000 routes where a combined US Airways and Delta would control 90 percent of the flights, which the company argues would prevent U.S. antitrust regulators from agreeing to the deal.

Delta also argued a combined US Air-Delta would have $23 billion in total debt, compared with about $10 billion in total debt for a standalone Delta.