US Airways, AMR near $11 bn merger, deal seen within week: sources
as Tuesday, sources told Reuters previously.
But AMR needed more time to finalize details and the boards of the two airlines are now not expected to gather until around Wednesday, the sources said.
The AMR creditors committee is still meeting on Monday in New York, as initially scheduled, and will continue discussions as the airlines finalize negotiations, they added.
A lawyer for the creditors committee declined to comment. Representatives for AMR and US Airways declined to comment.
A combination with US Airways would create the world's top airline by passenger traffic and help the two carriers better compete with rivals United Continental Holdings and Delta Air Lines Inc.
A near-$11 billion valuation of the combined American-US Airways compares to some $12.4 billion market capitalization for Delta, and $8.7 billion for United Continental.
The currently planned equity split ratio between AMR creditors and US Airways shareholders implies a roughly $3 billion valuation for US Airways and some $7.5 billion to $8 billion valuation for AMR.
NEW AMERICAN AIRLINES
US Airways will follow through on its agreement with AMR labor unions last year that the combined carrier would be branded American Airlines and be based in Fort Worth, Texas, where AMR is currently based, sources said. US Airways has its headquarters in Tempe, Arizona.
As part of the merger, US Airways will also leave the Star Alliance to join the oneworld global airline alliance, of which American Airlines is an anchor member along with British Airways, the people familiar with the matter said.
The airlines are estimating that a merger will bring
Be the first to comment.
