US: What future mergers can learn from American, US Airways settlement

Following the announcement earlier this week that the US Department of Justice reached a settlement with American Airlines and US Airways regarding their proposed merger, reports are now looking at how the outcome can offer lessons for future mega-mergers.

Antitrust lawyer Mark Ostrau spoke with reporters regarding the effects of the settlement, noting that because the DOJ is not a private litigant, the regulator is more likely to take a settlement before going to trial.

According to Ostrau, companies in future merger deals should know that “if you’re going to make a deal, you can save yourself a lot of time by giving your best offer early” to the DOJ.

Debate among experts remains, however, as to whether the DOJ failed to meet its own demands. Baker & Hostetler lawyer Jonathan Lewis, however, said that because the airlines “were expecting to give up nothing,” the DOJ succeeded in the deal.

The merger between American Airlines and US Airways will create the world’s largest airline, according to reports. Had the DOJ and the airlines not settled, the case was scheduled for trial beginning November 25.

Full Content: Reuters

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