plans to buy the bulk of
, according to two reports.
The Wall Street Journal
reported that UAL,
parent, will pay $4.3 billion in cash and assume $7.3 billion in debt and leases. The deal, which is worth about $60 for each US Airways common share, is expected to be announced Wednesday.
The Financial Times
also reported the pending acquisition.
US Airways closed Tuesday at 26 5/16, up 1 1/16. UAL closed at 60 3/8, up 5/8.
UAL already is the world's largest airline, and US Airways is the nation's sixth largest. The
noted that the new airline would have 6,500 daily flights, while the world's second biggest airline,
, parent company of
, and its affiliates have 3,600 daily flights.
But the newspaper also noted that the
could raise objections to the deal. It is suing
over Northwest's purchase of just 14% of Continental, the
The airlines will argue that there's little overlap, the
said. In addition, UAL will spin off most of US Airways' operations at
Reagan National Airport