January 9, 2010
American Airlines raised its offer to invest in Japan Airlines Corp. by $300 million to $1.4 billion, according to people familiar with the situation, intensifying American’s battle with rival Delta Air Lines Inc. to forge a partnership with the cash-strapped Japanese carrier.
American met with JAL executives Thursday morning and sweetened its offer, according to the people. American, along with other members of the oneworld airline alliance and private-equity fund TPG, last month offered to invest $1.1 billion in JAL. A formal announcement on the increased offer is expected next week.
We are still in negotiations with both airlines,” said a JAL spokeswoman, who declined to comment on whether American had increased its offer.
Delta President Ed Bastian at a news conference Thursday suggested his company could go higher, saying “we are willing and able to raise additional capital through third-party resources.” Delta and its SkyTeam alliance members have offered JAL a total package of about $1 billion, including $500 million in equity. A Delta spokesman declined to comment further.
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