Deals

Alaska-Hawaiian Deal Doubts Soothed After DOJ Deadline Extended

  • Deal spread narrowed to around $2 from $6 just last week
  • Antitrust enforcers now have until Aug. 20 to decide on merger

Hawaiian shares jumped 10% to close at $16.46 Thursday, narrowing the gap with Alaska’s $18-per-share takeover bid to less than $2.

Photographer: Eric Thayer/Bloomberg
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Traders trying to calculate regulators’ intentions have sent shares of Hawaiian Holdings Inc. on a roller coaster ride, but Thursday left them more confident than ever that Alaska Air Group Inc.’s $1.9 billion plan to buy the rival airline will go through.

Hawaiian shares jumped 10% to close at $16.46 Thursday, narrowing the gap with Alaska’s $18-per-share takeover bid to less than $2 — the tightest level since the merger was announced in December.