Navigate this market better. Subscribe for FREE stock alerts and information.

Wednesday, February 13, 2013

American-US Air merger gets board approval -sources, (NYSE: LCC)

The boards of AMR Corp and US Airways Group Inc separately met on Wednesday to approve a merger that would value the combined company at around $11 billion, people familiar with the matter said.The deal, which will be announced early on Thursday, comes more than 14 months after the bankrupt parent of American Airlines filed for bankruptcy in November 2011, and would mark the last combination of legacy U.S. carriers, following the Delta-Northwest and United-Continental mergers.The board approval came after AMR's unsecured creditors committee, which includes all three of AMR's major unions, met earlier in the day to approve a proposed merger agreement, the people said.The all-stock merger would give AMR creditors 72 percent of ownership in the merged entity and US Airways shareholders the rest, the people said.

US Airways Group, Inc. operates and owns passenger and freight airline carrier. Shares of LCC traded higher by 2.73% or $0.39/share to $14.66. In the past year, the shares have traded as low as $6.78 and as high as $15.64. On average, 6272540 shares of LCC exchange hands on a given day and today's volume is recorded at 10250512.