US Airways, AMR deal could come in next 2 weeks
the board of a merged company, which would consist of members from the existing boards of US Airways and AMR, and those to be designated by AMR creditors, the people said.
Negotiations have now largely come down to how the equity of the combined company would be split between shareholders of US Airways and creditors of AMR, and who will run the merged airline, according to the people familiar with the matter.
US Airways' formal merger offer made in November, which calls for its chief executive, Doug Parker, to run the combined airline, proposed that AMR creditors own 70 percent of the equity and shareholders of US Airways own the rest, the people have said.
AMR management led by Chief Executive Tom Horton believes the airline's creditors should own more than 70 percent of the equity in a merged airline, according to the people. It also remains unclear if Horton and the AMR board would ultimately agree to Parker taking the helm.
Horton rebuffed an aggressive takeover push from US Airways early in the bankruptcy process, saying the airline preferred to exit court protection on its own and consider a deal later.
But after several months of talks with its own creditors as well as US Airways, Horton has softened his approach and agreed to consider all options.
A combined American-US Airways would give American the scale to match bigger rivals that are upgrading service and expanding international routes. The merged company would have revenue of $38.69 billion based on 2012 figures, in front of United
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