Connect to share and comment
American Airlines and US Airways, essentially cleared for merger next month, on Friday said that the combined company, the world's biggest airline, will trade on the Nasdaq Stock Market.
American's parent, AMR Corporation, and US Airways Group knocked down a major hurdle for their merger Tuesday by agreeing to drop airport slots and other rights at key airports in a proposed deal settling a Justice Department antitrust lawsuit.
Court approval of the deal appeared likely, and the two companies announced plans for the new American Airlines to debut on the tech-rich Nasdaq, abandoning the rival New York Stock Exchange where US Airways currently trades.
American used to be listed on the NYSE but is now being traded over the counter as it undergoes Chapter 11 bankruptcy reorganization.
"Upon closing of the merger and AMR's emergence from Chapter 11, the combined company will be renamed American Airlines Group Inc. and will use the ticker symbol AAL," the companies said in a joint statement.
US Airways and AMR common stock will be cancelled and current investors will receive shares in the combined group under the merger terms.
The companies expect to complete the merger in December.
"Today we moved another step closer in our preparations to launch the new American Airlines. NASDAQ offers a most advanced trading platform driven by innovation and efficiency -- qualities that complement the new American," Tom Horton, AMR chairman, president and chief executive, and incoming chairman of the new American, said in the statement.
"We are very excited about the listing of our shares on the NASDAQ Global Select Market," said Doug Parker, chairman and CEO of US Airways, and incoming CEO of the new giant airline.
The head of Nasdaq OMX, operator of the Nasdaq Stock Market, Bob Greifeld, welcomed the planned market debut.
"We are pleased to have the new American Airlines call NASDAQ home and we look forward to celebrating many milestones with the company and its shareholders in the years to come," Greifeld said in the statement.
Nasdaq OMX crowed on Twitter about landing the big global airline. "SHARE this historic switch:@AmericanAir will be traded on #NASDAQ$AAL," it tweeted.
US Airways shares closed almost 1.0 percent higher, AMR lost 1.5 percent in over-the-counter trade and Nasdaq OMX dipped 0.3 percent.
Shares in IntercontinentalExchange, which took over the NYSE Euronext on Wednesday, were up 1.6 percent.