US Airways and American Airlines takes a step closer to merger

July 12
11:58 AM 2013

US Airways and American Airlines took a step closer to their proposed merger on Friday, as shareholders of US Airways voted for the merger.

There were 132,273,780 shares that voted for the merger. On the other hand, only 257,757 shares voted against the merger. Meanwhile, 256,523 shares abstained from voting.

The proposed merger was still under review by the US Department of Justice for possible anti-trust violations. In addition, the merger would also need the approval of the judge overseeing the bankruptcy case of American Airlines.

Since November 2011, American Airlines and its parent group, AMR Corporation, operated under bankruptcy protection. AMR would be emerging from Chapter 11 as American Airlines Group Inc., which is the name of the proposed merged company.

The proposed merger has been scheduled for approval on August 15. Should the proposed merger push through, US Airways shareholders will be getting 28% shares of the new company. The rest will be for creditors, employees, and shareholders of AMR Corporation.

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