US Airways (LCC), AMR Corp (AAMRQ) Said to Settle with U.S. Over $17.2B Merger
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(Updated - November 12, 2013 11:31 AM EST)
AMR Corp (OTCBB: AAMRQ) popped higher and US Airways (NYSE: LCC) was halted up 3.4 percent today following headlines that the two may have entered a settlement agreement with the U.S. over their $17.2 billion merger agreement.
Bloomberg notes that a deal with the U.S. Department of Justice (DoJ) is expected to be announced today, which is why US Airways stock is halted.
The DoJ was looking for further concessions from AMR and US Airways in order to make the deal go through. Those might include such items as divesting certain slots at Reagan National in Washington, D.C., and remedy the 1,000 connecting city-pairs issue with potential gate divestitures. Slot adjustments will probably be made at other key airports like La Guardia, JFK, and O'Hare.
The agreement would come ahead of a trial between the two sides, which was slated to begin November 25th.
AMR Corp (OTCBB: AAMRQ) popped higher and US Airways (NYSE: LCC) was halted up 3.4 percent today following headlines that the two may have entered a settlement agreement with the U.S. over their $17.2 billion merger agreement.
Bloomberg notes that a deal with the U.S. Department of Justice (DoJ) is expected to be announced today, which is why US Airways stock is halted.
The DoJ was looking for further concessions from AMR and US Airways in order to make the deal go through. Those might include such items as divesting certain slots at Reagan National in Washington, D.C., and remedy the 1,000 connecting city-pairs issue with potential gate divestitures. Slot adjustments will probably be made at other key airports like La Guardia, JFK, and O'Hare.
The agreement would come ahead of a trial between the two sides, which was slated to begin November 25th.
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