UAL, US Airways in $4.3 Billion Merger Talks

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UAL(UAL Quote), parent of United Airlines, reportedly intends to purchase rival US Airways(U Quote) for $4.3 billion in cash, or $60 a share, according to the Financial Times' and Wall Street Journal's Web sites. US Airways stock closed at 26 5/16 today.

UAL would also assume about $7.3 billion in debt and lease agreements as part of the deal. Reports have said that both boards have met separately to discuss the merger, but opinions vary as to whether both or one of the boards have already approved it. It is likely that a merger of this size, involving two of the world's largest airlines, would result in a lengthy approval process and would have to be vetted by government agencies including the Securities and Exchange Commission, Federal Aviation Agency and the Justice Department.

UAL already is the world's largest airline, and US Airways is the nation's sixth largest. The Journal noted that the new airline would have 6,500 daily flights, while the world's second-biggest airline, AMR (AMR Quote), parent company of American Airlines, and its affiliates have 3,600 daily flights. ...