:max_bytes(150000):strip_icc()/GettyImages-2051578151-6229dca1ac6c44ad91378b5e64ac491e.jpg "Hawaiian Holdings shares fall as Justice Department to rule on Alaska airline contract")
Key findings
- Shares of Hawaiian Holdings, the parent company of Hawaiian Airlines, fell in intraday trading on Monday amid fears that U.S. regulators may try to stop Alaska Air Group’s $1.9 billion purchase of the company.
- Officials were supposed to complete their investigation and make a decision on August 5, but during the negotiations the deadline was extended three times.
- The agreement was first announced in December and drove up Hawaiian Holding’s share price at the time.
Shares of Hawaiian Holdings (HA), the parent company of Hawaiian Airlines, fell in intraday trading on Monday amid fears that the Department of Justice (DOJ) could block Alaska Air Group’s (ALK) $1.9 billion purchase of the airline.
The Justice Department’s decision was originally scheduled to be made by August 5, after a 90-day review, but was postponed three times as regulators and airlines continued to negotiate the concessions needed for government approval.
Merger announced last December, but is being reviewed
The merger was announced last December, and in February the Justice Department requested more information to assess potential antitrust implications. In May, the airlines said they had “certified substantial compliance,” beginning the review phase.
In Hawaiian Holdings’ second-quarter conference call in late July, CEO Peter Ingram said the company was “optimistic that the merger will receive regulatory approval in due course” and that the company and Alaska Air “are and will continue to cooperate with the Department of Justice.”
Shares of Hawaiian Holdings, which have more than tripled in value since the deal was announced, fell about 4.5 percent to $15.86 as of 2:15 p.m. ET on Monday. Shares of Alaska Air Group rose less than 1 percent on Monday, but have lost about 11 percent since the beginning of the year.
