This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Look for a Nov. 25 Settlement in the US Airways/AMR Merger Case

CHARLOTTE, N.C. ( TheStreet) -- Now the attorney general is speaking publicly about settlement terms for a merger between American (AAMRQ) and US Airways (LCC) , the best indication yet that this case is headed for a settlement.

It has always seemed likely that the case would be settled on Monday, Nov. 25, the first day of a scheduled trial in U.S. District Court, where Judge Colleen Kollar-Kotelly, signaling her preference for a settlement, scheduled a trial for Thanksgiving week. That would be a deal made at the last minute, as deals often are.

On Monday, Attorney General Eric Holder, speaking at a news conference involving another case, said settlement talks are "ongoing (and) we hope that we will be able to resolve this short of trial.

"What we have tried to focus on is to make sure that any resolution in this case necessarily included divestitures of facilities at key constrained airports throughout the United States," Holder said. "That, for us, is something that has to be a part of -- of any resolution.

"Our concern is making sure that we look at, as we have -- as we do in all cases that the antitrust division brings, to make sure that we bring benefit to consumers. We certainly alleged in the complaint the concerns that we've had. And there are a number of ways, I think, that we can deal with those concerns."

Asked whether he had a magic number of slots that would have to be divested to enable a deal, Holder responded, "Yes, there is, but I won't tell you what it is."

The day before, news of settlement talks was leaked to The Wall Street Journal. This is how these matters are often resolved. People always say they do not want to negotiate in the newspaper. But the truth is that newspapers often provide efficient venues not only for parties to lay out their cases, but also but also for negotiations to take place because the parties can throw out suggestions and gauge the response without formally offering anything.

The Justice Department shocked the airline industry on Aug. 13, when it said it would sue to block the planned merger. But since then nothing has gone the Justice Department's way.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!
SYM TRADE IT LAST %CHG
LCC $0.00 0.00%
AAPL $128.46 0.00%
FB $78.97 0.00%
GOOG $558.40 0.00%
TSLA $203.34 0.00%

Markets

DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

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