A federal judge approved
proposed $742 million purchase of the assets of bankrupt
Trans World Airlines
Monday, rejecting competing offers, including a $1.1 billion bid by financier Carl Icahn.
The purchase must still be approved by the
Department of Justice
. The sale could close in April, according to published reports, and the 70-year-old TWA brand would disappear soon after that.
AMR is the parent company of
, which said it intends to offer jobs to most of TWA's 20,000 employees. TWA unions are also expected to approve the purchase.
American said it will assume $3.5 billion in TWA debt and wire $130 million in emergency financing to creditors of TWA Monday afternoon.
In recent trading on the
New York Stock Exchange
, AMR was down 93 cents, or 2.6%, to $35.50.