Alaska Air to Acquire Rival Hawaiian for $1.9 Billion

Alaska Air Group Inc said on Sunday it would acquire Hawaiian Holdings Inc for $1.9 billion, including debt, placing a bet on a troubled airline with lucrative routes as U.S. antitrust regulators fight consolidation in the sector.

Alaska Air said it would pay $18 per share in cash, close to four times Hawaiian’s closing price on Friday. The whopping premium reflected how battered Hawaiian’s shares were. The Maui wildfires, high fuel costs and jet engine recall issues at some of Hawaiian’s Airbus SE planes contributed to heavy losses and a 65% share price drop in the last 12 months.

The deal is bound to attract antitrust scrutiny as U.S. regulators challenge JetBlue Airways Corp’s proposed $3.8 billion acquisition of Spirit Airlines Inc in court.

Read the source article at Yahoo Finance