CHARLOTTE, N.C. ( TheStreet) -- Shares in US Airways (LCC) rose 16% Thursday after TheStreet reported that the carrier has been successfully gathering union support for its bid for bankrupt AMR (AMMRQ.PK).
Shares rose steadily after the story was reported shortly after noon, and continued to rise after it was reported by other outlets.
Volume was 31 million, nearly four times the average daily volume over the past four months.
Year-to-date, US Airways shares are up 82%.The carrier has managed to win qualified backing for its takeover bid from four AMR unions, the Transport Workers, the Allied Pilots Association, the Association of Professional Flight Attendants and the Association of Flight Attendants, which represents flight attendants at American Eagle, according to people with knowledge of those discussions. "The unions are working together," said a person familiar with the agreement. "They are open to a merger, not circling the wagons against one." Another person said the APA is part of the group backing the US Airways bid, a point that was not initially clear. In a note issued Thursday, Maxim Group analyst Ray Neidl discussed the story and said: "Our take is that US Airways cannot offer too much