Delta shareholders favour merger with Northwest

Washington DC
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Stockholders at Delta Air Lines joined Northwest Airlines shareholders in approving the proposed merger between the US majors.

Delta voted in favour of issuing 1.25 shares of its common stock for each outstanding share of Northwest stock upon closing of the merger, which the carriers expect to happen this year.

The proposal was approved by roughly 99% of the votes cast by Delta stockholders. More than 98% of the votes cast by Northwest stockholders were voted in favour of the merger.

The combined carrier, which will operate under the Delta brand, predicts annual synergies of at least $2 billion, which will be ramped up in 2012, and integration costs of about $600 million spread over three years.

Delta stockholders also approved an amendment to Delta's broad-based employee compensation program that will allow the company to distribute equity to US-based employees of the combined company after the merger closes.