Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

AMR Starts Merger Review Process, Sends Papers to US Airways

July 28 (Bloomberg) -- American Airlines parent AMR Corp. began a process to review merger offers yesterday by sending potential suitor US Airways Group Inc. an agreement to allow an exchange of confidential financial information.

American developed the non-disclosure agreement along with the unsecured creditors committee in its bankruptcy, the airline told managers in a memo yesterday. The airline declined to name others that will receive the agreement, said Andy Backover, a spokesman for Fort Worth, Texas-based American.

The document was created “to govern a fair and objective process of comparing all strategic alternatives” to American’s own plan to emerge from bankruptcy on a stand-alone basis, according to the memo.

US Airways, which first expressed interest in merging with American during its restructuring in January, declined to comment beyond confirming it had received the agreement.

American Chief Executive Officer Tom Horton said July 10 the company was ready to consider alternatives after determining expected future revenue and costs under its plan to remain independent.

US Airways hasn’t made a formal merger offer because American holds the exclusive right to propose a restructuring plan to the bankruptcy court through the end of this year.

To contact the reporter on this story: Mary Schlangenstein in Dallas at maryc.s@bloomberg.net

To contact the editor responsible for this story: Ed Dufner at edufner@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.