Delta Air Lines Inc. will hold a special meeting Sept. 25 for stockholders to vote on issuing stock for the proposed merger with Northwest Airlines Corp.
The gathering will be in Delta's hometown of Atlanta, where the combined carrier will be based after the tie-up closes later this year, Delta said Friday in a statement. Northwest will hold its annual meeting in New York the same day to vote on moving forward with the deal.
Shareholders will also vote on amending Delta's performance compensation plan to allow equity grants to employees after the merger, Delta said. The carrier has agreed to give a 3.5 percent equity stake to its own pilots, 2.38 percent to Northwest pilots, and 4 percent for other non-pilot employees.
The combined airline will keep the Delta name and be run by Delta Chief Executive Officer Richard Anderson. It will have almost 800 planes, 75,000 employees and $35 billion in annual revenue.
Each Northwest share will be exchanged for 1.25 Delta shares in an all-stock deal that will create the world's largest airline by traffic.
The value of the deal has dropped by more than half, to $1.71 billion, as the shares of both airlines have declined after a 58 percent jump in jet-fuel prices so far this year.
Delta fell 26 cents, or 5 percent, to close at $4.93 in New York Stock Exchange composite trading Friday. Northwest slid 28 cents to $5.81.
The Sept. 25 meeting will be at the Georgia International Convention Center in College Park, Ga., near Delta's headquarters. Shareholders of record as of July 29 will be entitled to vote.