Delta, Northwest shareholders approve measures that bring merger closer to completion

By Lisa Kerner

Charlotte, N.C., Sept. 25 - The respective stockholders of Delta Air Lines Inc. and Northwest Airlines Corp. approved proposals needed to complete the companies' pending merger.

Northwest said more than 98% of its shares voted to adopt the merger agreement with Delta.

Delta stockholders approved the issuance of 1.25 shares of Delta common stock for each outstanding share of Northwest stock to be distributed upon closing of the merger, said a Delta news release. More than 99% of the votes cast by Delta stockholders were in favor of the proposal.

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.

According to Northwest, regulatory approval of the merger from the Department of Justice is expected by the end of the year.

"This is a resounding vote of confidence by shareholders for our merger with Delta Air Lines and a great day for our employees, who will receive equity in the combined company and more stable, long-term employment opportunities," Northwest president and chief executive officer Doug Steenland said in the release.

"The $2 billion in annual synergies achievable through this merger are something neither carrier could have achieved as a stand-alone carrier."

Northwest stockholders also re-elected the 12 directors on the company's board, approved an amendment to the Northwest 2007 stock incentive plan and ratified the appointment of Ernst & Young LLP as Northwest's independent registered public accounting firm for 2008.

Delta said its stockholders also approved an amendment to Delta's employee compensation program.

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