US Airways and AMR Corp., American Airlines' parent company, provided an estimate of the equity distribution for the new stock after the two carriers merge next week.
Based on the 20 trading day average closing price of US Airways, which is $23.4815 per share, the new airline will have a market capitalization of $17.75 billion.
Per the merger agreement, US Airways will receive 28 percent of the new company and 72 percent will go to AMR Corp. The carriers estimate that US Airways shareholders will receive 211,698,617 shares while AMR creditors and shareholders will receive 544,361,824 shares.
The merger is expected to close on December 9 with the last day of trading for shares of AMR [ticker: AAMRQ] and shares of US Airways [ticker: LCC] to occur on December 6.