This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Texas Will Back US Airways/AMR Merger, Sources Say (Update 1)

Story updated to say that U.S. District Court judge denies Justice Department request for a stay in merger hearing.

CHARLOTTE, N.C. ( TheStreet) -- The U.S. Justice Department lost two battles Tuesday in its effort to prevent a merger between American (AAMRQ) and US Airways (LCC).

The department lost the support of Greg Abbott, Texas attorney general, for its lawsuit opposing the merger, sources said. Also, a U.S. District Court judge denied the DOJ's effort to delay the scheduled Nov. 25 trial date.

The airlines and Abbott scheduled a joint announcement for 3 p.m. EDT at Dallas/Fort Worth International Airport. They promised "an important development related to the merger of the two airlines." Abbott will withdraw his support for the Justice Department lawsuit opposing the merger, sources said. He will appear with American CEO Tom Horton at the news conference.

Additionally, U.S. District Court Judge Colleen Kollar-Kotelly quickly rejected the department's request to stay the case.

The Justice Department reacted quickly on Tuesday morning to the government shutdown, saying it needs more time to prepare for a U.S. District Court hearing on its lawsuit opposing the merger.

But in a hearing prior to the conference, Kollar-Kotelly "indicated she is aware of the merger expiration deadline of January 18, 2014 and will do her best to render a decision prior to that time," according to a newsletter for US Airways pilots issued by their union, the U.S. Airline Pilots Association.

The Justice Department had argued that the shutdown "is creating difficulties for the department to perform the functions necessary to support its litigation efforts and, accordingly, the department's policy is to seek a stay in all pending civil litigation."

In mid-afternoon trading US Airways shares were up 68 cents to $19.64.

-- Written by Ted Reed in Charlotte, N.C.

>To contact the writer of this article, click here: Ted Reed

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,090.44 -82.24 -0.48%
S&P 500 1,988.29 -6.00 -0.30%
NASDAQ 4,523.2360 -4.4530 -0.10%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs