Hedge fund urges investors to back Delta-United merger

ATLANTA — A hedge fund that advocates a combination of Delta Air Lines Inc. and UAL Corp.'s United Airlines took its case Friday to a group of investors in the two airlines, looking for support.

Gordon Bethune, an adviser to hedge fund Pardus Capital Management LP, said he led a presentation for what he called major shareholders in Delta and United. The former chief executive of Continental Airlines said the focus was on consolidating the Atlanta-based Delta and the Chicago-based United.

He said scenarios were also discussed about combining Delta with Northwest Airlines — the former company of Delta CEO Richard Anderson — and Delta with Continental. Bethune said many investors feel United is the most natural fit for Delta.

Delta spokeswoman Chris Kelly declined comment on Friday's investors presentation. United spokeswoman Jean Medina said while the company appreciates investors' opinions, "we will participate in business opportunities on our own terms."

Earlier this week, an official with knowledge of the talks told The Associated Press that United and Delta have been discussing a combination that would keep the United name and the corporate headquarters in Chicago.

Delta issued a statement denying "it had engaged in merger talk with United." United called the report of recent talks "wholly inaccurate."