US Airways Wants Regulator Approval for Merger Deal
US Airways (NYSE: LCC) said on Wednesday that it wants to boost its chances of completing a merger with AMR Corp by seeking the approval of federal antitrust regulators.
LCC is planning to file paperwork as early as July in the hope that regulatory approval will smooth the way for the potential deal and remove any uncertainty.
US Airways are obviously attempting to speed up the process and bring about a swift conclusion to a deal that it has been showing interest in since AMR filed for Chapter 11 bankruptcy in November.
The unions could have caused a potential hiccup with the deal, but that possibility appears to have been covered as LCC has arrived at an agreement with American unions that will kick in if the merger is completed. American Airlines, which is owned by AMR, has been negotiating with its own union, as well as the bankruptcy court over existing union contracts.
US Airways sources have said that the company wants to submit the filing with the consent of AMR, which has not shown any willingness as yet to aggressively chase a merger but it has said that it wants to explore all options. It would seem that a merger with LCC is the most realistic option, and that any attempts to slow down the process at this stage will only delay the inevitable.
In addition to the antitrust filing, US Airways is planning to conduct due-diligence over the next couple of months, again depending on the level of cooperation from AMR. LCC is hoping to be able to present the creditor's committee with a definitive proposal.
It has been a busy June for US Airways, as it recently awarded $325,000 in grants to four nonprofit organizations as part of the Community Foundation's spring funding period.
LCC awards grants to companies located in and providing services in its hub and focus cities of Charlotte, N.C., Phoenix, Philadelphia and Washington, D.C, and the US Airways Community Foundation looks at how the businesses score in the following areas: Improving and expanding educational opportunities that teach skills to succeed in school and gain meaningful employment; programs that provide basic human needs to help encourage, sustain and develop economic self-reliance, and access to major arts and culture organizations that broaden artistic excellence.
On Wednesday, LCC is trading at $11.43, up 0.62%.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.