Northwest in Talks With Delta

As U.S. Airways upped its bid to $10 billion for Delta Airlines, a new player got in the game Wednesday, with Northwest Airlines looking to join Delta.

Northwest has been talking with Delta about a possible merger when the two carriers leave bankruptcy, The Wall Street Journal said.

Meetings at various executive levels have been going on for weeks, focusing on an alterative to the hostile takeover bid by US Airways, the Journal said.

Raising both cash and stock offerings, US Airways is offering $5 billion in cash and 89.5 million shares worth $5.18 billion. The original offer, tendered in November, was for $4 billion and 78.5 million shares.

Delta is opposed to the merger, hoping to go it alone in its emergence from bankruptcy.

The latest US Airways bid runs through Feb. 1.