Northwest Airlines becomes Delta subsidiary as merger is completed

By Lisa Kerner

Charlotte, N.C., Oct. 29 - Delta Air Lines, Inc. and Northwest Airlines, Inc. completed their merger on Wednesday, with Northwest becoming a wholly owned Delta subsidiary.

The new airline will be called Delta and will be based in Atlanta, a Delta news release said.

In April, Atlanta-based Delta and Eagan, Minn.-based Northwest announced plans to merge in an all-stock transaction with a combined enterprise value of $17.7 billion.

Northwest stockholders will receive 1.25 Delta shares, valued at $9.99 based on Delta's Wednesday closing stock price, for each Northwest share they own.

Delta said it will also distribute an equity stake to most all of its U.S.-based employees. Participating international employees will receive cash payments in lieu of stock.

The new members of Delta's board of directors include seven directors from Delta's board: Richard Anderson, John S. Brinzo, Eugene I. Davis, David R. Goode, Paula Rosput Reynolds, Kenneth C. Rogers and Kenneth B. Woodrow.

The four directors from Northwest's board to join Delta's board are John M. Engler, Mickey P. Foret, Rodney E. Slater and former Northwest CEO Douglas Steenland.

Delta chairman Daniel Carp remains chairman, and Northwest chairman Roy Bostock is now vice chairman.

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