Speculate as to why the share prices of American and US Airways increased sharply on the day

Question:

Speculate as to why the share prices of American and US Airways increased sharply on the day that the agreement with the Justice Department had been reached? Why did the share prices of other major airlines also increase?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Mergers, Acquisitions and Other Restructuring Activities

ISBN: 978-0128013908

8th edition

Authors: Donald DePamphilis

See More Books

Question Posted: Sep 08, 2017 10:07 AM

See More Questions

The Vanguard Group is an investment firm with more than 50 different mutual funds in which the public may invest. Among these funds are 13 international funds that concentrate on investments in...
How was ownership transferred in this deal? Speculate as to why this structure may have been used?
1. Speculate as to why Novartis acquired only a 25% ownership stake in Alcon in 2008. 2. Why was the price ($181 per share) at which Novartis exercised its call option in 2010 to increase its stake...
Assume that you are purchasing an investment and have decided to invest in a company in the digital phone business. You have narrowed the choice to Best Digital, Corp., and Every Zone, Inc., and have...
Which of the following reactions is more likely to occur?Explain. eat eat 2.
Do you think Facebook is acting responsibly or merely trying to monetize kids as critics claim? Facebook recently announced that it will let teens' posts become public. Before the change, Facebook...
Accounting for Participation Rates Exercises 2.30 and 2.31 show that smokers who agreed to be in the Deposit group (having their own money at risk) were much more likely to quit smoking than those...
In 2013, the Marion Company purchased land containing a mineral mine for $1,600,000. Additional costs of $600,000 were incurred to develop the mine. Geologists estimated that 400,000 tons of ore...
Key figures for the recent two years of both Apple and Google follow. Apple Google $ millions Current Year Current assets Current liabilities $ 162,819 105,718 Prior Year $ 131,339 $ 152,578 115,929...
On January 2, 2016, Pop Corporation enters into a business combination with Son Corporation in which Son is dissolved. Pop pays $1,650,000 for Son, the consideration consisting of 66,000 shares of...
Whose interests do you believe antitrust regulators represent? What trade-offs do antitrust regulators face in making decisions that impact the groups whose interests they represent? Be specific.
Why do you believe the regulators approved the deal despite the large increase in industry concentration and their awareness that historically increases in concentration would likely result in a...
Inspection of records and documents relates to the auditors examination of entity accounting records and other information. One issue that affects the reliability of documentary evidence is whether...
Mecca Copy, a photocopying center located on University Avenue, provided the following data to prepare a budgeted balance sheet for next year: Ending Balances Cash ? question mark Accounts receivable...
Draft a letter to the publisher inviting the newspaper to host a public forum on Acme's proposed tank farm. For an Acme Petroleum letterhead, make up a mailing address, phone, and website address....
lamp corporation produced and sells a single producT. Data concerning that product appear below :selling price 1 1 0 : variable expense 2 9 . 7 0 : fixed expense per month 3 4 5 2 9 0 . Assume the...
What is a relational turning point that you or someone you know has encountered that may seem unusual? Why are relational turning points so subjective? Are there any that you think are universal?
Using Newton-Raphson method, x-2 is chosen as the first point to find the root of 3x+3=2x, what is the next x?
Northwest Carburetor Company established a fund in 2018 to accumulate money for a new plant scheduled for construction in 2021. How should this special purpose fund be reported in Northwests balance...
Consider the combustion of methanol below. If 64 grams of methanol reacts with 160 grams of oxygen, what is the CHANGE in volume at STP. 2CH3OH(g) + 3O2(g) 2CO2(g) + 4H2O(1) The volume decreases by...
Explain how purchase accounting is implemented in a merger. Does the accounting profession now require this method? How is any premium that the acquiring firm paid over the acquired firms book value...
Acquisitions can have important tax consequences depending on (a) Whether the acquiring firm purchases the targets stock or just its assets, (b) Whether cash or stock is used for the payment, and (c)...
Distinguish between the APV, FCFE, and corporate valuation models.
Do you envision the business as starting by targeting specific needs of a single target community (e.g. the target is San Francisco), targeting specific needs of a similar set of communities (e.g....
Define social media. ( 20 points ) How has social media changed the way marketers and consumers communicate with one another? Explain the implications for marketers. Describe how marketing managers...
Find an article or video offering advice on choosing the best financing option for a business. Answer the following questions: Which types of financing did they discuss? What advice did they offer?...

Speculate as to why the share prices of American and US Airways increased sharply on the day

Question:

Step by Step Answer:

Investors approved of the merger and other airline share prices rose due ...View the full answer

Mergers, Acquisitions and Other Restructuring Activities

Students also viewed these Corporate Finance questions