US Airways Group, Inc. (LCC) and American Airlines to Merge: What It Means for Shareholders

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Despite this news, US Airways shares sank as low as $13.50 on Thursday morning. This 10% discount may reflect investor skepticism about the $11 billion valuation assumed by the two management teams. My inclination is to stay away from either stock at this point, as the difficulty of integrating two major carriers will probably constrain profit for the next two years. However, if you want to invest in this merger story, buying US Airways stock definitely looks like the better way to do so.

The article US Airways and American Airlines to Merge: What It Means for Shareholders originally appeared on Fool.com and is written by Adam Levine-Weinberg.

Fool contributor Adam Levine-Weinberg owns shares of Delta Air Lines and is short Mar 2013 $14 Calls on Delta Air Lines. Adam Levine-Weinberg is short shares of United Continental Holdings. The Motley Fool has no position in any of the stocks mentioned.

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