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Saturday, February 9, 2013

US Air, AMR near $11 billion merger, deal seen within week-sources, (NYSE: LCC)

US Airways Group Inc and AMR Corp are nearing an $11 billion merger that would create the world's largest airline and could announce a deal within a week, after resolving key differences on valuation and management structure, people familiar with the matter said.Under terms of a deal that are still being finalized, US Airways Chief Executive Doug Parker would become CEO, while AMR's Tom Horton would serve as non-executive chairman of the board until spring of 2014, when the combined company holds its first annual meeting, the sources said.The deal would come more than 14 months after the 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 all-stock merger is expected to value the combined carrier at between $10.5 billion and $11 billion, and would give AMR creditors 72 percent of the ownership in the new company and US Airways shareholders the rest, they said.

US Airways Group, Inc. operates and owns passenger and freight airline carrier. Shares of LCC fell by 2.38% or $-0.36/share to $14.75. In the past year, the shares have traded as low as $6.78 and as high as $15.64. On average, 6212930 shares of LCC exchange hands on a given day and today's volume is recorded at 8407782.



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