US Airways, AMR seek an extension for merger: report
(Reuters) - US Airways Group Inc LLC and American Airlines parent AMR Corp said they would ask their boards to extend the termination date of their proposed $11 billion merger due to uncertainties related to a government lawsuit, the Wall Street Journal reported, citing sources.
The Justice Department filed a lawsuit on August 13 to stop the deal arguing the merger would violate antitrust laws because it would lead to higher airfares and related fees.
AMR Chief Executive Tom Horton and US Airways CEO Doug Parker, in response to questions from members of the creditors committee in AMR's bankruptcy case, said that they intended to extend the termination date in case the merger did not receive regulatory approval by December 17.
The new termination date was not known.
The companies have said that the deal is critical for American Airlines, whose parent, AMR Corp, has been operating under Chapter 11 bankruptcy protection since late 2011.
US Airways, in a filing Tuesday evening, argued that the deal was lawful and should be allowed to go forward.
(Reporting by Tanya Agrawal in Bangalore)
WASHINGTON - Start-up companies will be able to raise much more capital through certain public stock deals without facing costly regulatory burdens under a proposal announced by U.S. securities regulators on Wednesday.
BEIJING/HONG KONG - China reiterated its opposition on Thursday to a European Union plan to limit airline carbon dioxide emissions and called for talks to resolve the issue a day after its major airlines refused to pay any carbon costs under the new law.