Appaloosa Said to Hold USAirways, AMR Stakes Amid Talks

Appaloosa Management LP has positioned itself to benefit from a possible merger between bankrupt AMR Corp. and US Airways Group Inc. after taking stakes in both airlines, three people familiar with the matter said.

While the hedge fund run by David Tepper isn’t lobbying for a tie-up, it favors consolidation and may opt later to push for a deal, said one of the people, who asked not to be identified because the matter is private. Appaloosa is US Airways’ top shareholder and has amassed AMR debt that could be converted to equity in a Chapter 11 restructuring, court records show.