MEMPHIS, Tenn.(AP) -- Officials say the merger between Delta and Northwest airlines means the companies' current hubs -- including Northwest's hub in Memphis -- will remain in operation.
Under the terms of the Delta transaction, which was approved by the companies' boards Monday, Northwest shareholders will receive 1.25 Delta shares for each Northwest share they own.
That's a premium to Northwest shareholders of 16.8 percent based on Monday's closing price.
Delta said the combined airline, which will be called Delta, will have an enterprise value of $17.7 billion.
Larry Cox, president and chief executive of the Memphis-Shelby Airport Authority, says he believes the airport and the city will prosper under the larger airline.
Memphis officials also say the new airline will likely mean more international flights out of Memphis.
(Copyright 2008 by The Associated Press. All Rights Reserved.)