Hawaiian Air stock soars after being acquired by Alaska Airlines
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The news: Shares in Hawaiian Holdings Inc. skyrocketed 178% on Monday, following news that Alaska Air Group Inc. would acquire the airline’s parent for USD1.9 billion ($2.87 billion).
The numbers: According to the deal announcement, Alaska Airlines will acquire Hawaiian Airlines for USD18 per share in cash, with an overall transaction value of USD1.9 billion including USD0.9 billion of Hawaiian Airlines debt. The figure amounts to a premium of 270% on Hawaiian Airline’s Friday closing price of USD4.86.
The content: The stock remains around 22% lower than the USD18 price paid by Alaska Airlines, which may indicate investor concerns about regulatory pushback on the merger. The Biden government blocked a partnership between JetBlue and Sprit Airlines earlier this year, in efforts to curtail consolidation in the industry.
The source: Alaska Air Group
