US Airways Group Inc (NYSE:LCC) and AMR Corporation (PINK:AAMRQ) could announce their all-stock merger on Thursday, after their boards cleared the deal on 13 February, sources close to the situation told news agency Reuters..
The combination will create the largest airline in the world with an estimated market value of some USD11bn (EUR8.2bn).
The merged airline will operate as American Airlines and will be 72%-owned by AMR’s bankruptcy creditors, which approved the tie-up on Wednesday, the sources said. Shareholders of US Airways will hold the rest of the resulting company which will be based in Fort Worth, Texas.
Its board will initially include 12 directors, with five to be appointed by AMR creditors, four to represent US Airways and the other three to come from AMR, two sources said. In 2014, the board will only have 11 members, as AMR’s CEO Tom Horton is expected to resign it and become the chief executive of the new airline, the sources told the news agency.
AMR, the parent of American Airlines, filed for bankruptcy in November 2011.