Transportation
Alaska Air Falls as Wall Street Questions $1.9 Billion Hawaiian Deal
- Hawaiian stock soars, but still trades below $18 offer price
- Biden administration has opposed airline consolidation
A Hawaiian Airlines jetliner departs from Las Vegas.
Photographer: Las Vegas Review-Journal/Tribune News Service/Getty Images
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Alaska Air Group Inc. shares sank after it said it would acquire Hawaiian Holdings Inc. for $1.9 billion in cash and debt, in the latest attempt to consolidate the US aviation industry despite regulatory headwinds.
Alaska shares fell as much as 19% in New York on Monday. Shares of Hawaiian rose as high as $14.20, almost tripling after the deal’s announcement on Sunday but still below the $18 price Alaska agreed to pay. This suggested that investors remain concerned that the deal may not clear regulatory hurdles.