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UAL to buy US Airways for $4.3 billion in cash
UAL Corp, the world's largest airline, has agreed to buy most of US Airways Group Inc, the nation's sixth-largest airline, in a deal valued at $4.3 billion in cash and $7.3 billion in assumed debt and leases, according to people familiar with the matter.The boards of both airlines met and approved the deal Tuesday. The matchup of UAL, parent of United Airlines, and US Airways is to be announced Wednesday. The plan would create a carrier of enormous scale - 6,500 daily flights and multiple hubs on both coasts. By contrast, the world's second-largest airline, AMR Corp's American Airlines and its commuter affiliates, has 3,600 daily flights. UAL is expected to pay $60 for each share of US Air's common stock, a premium of 131 per cent over the smaller airline's closing share price of $25.9375, up 68.75 cents, in 4 pm composite trading Tuesday on the New York Stock Exchange. -- (The Wall Street Journal) Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.
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