NEW YORK (CNNfn) - US Airways Group's top management said Tuesday it will not recommend a breakup of the company to the board of directors in the wake of the collapse of United parent UAL Corp.'s $4.3 billion takeover bid.|
US Airways Chairman Stephen M. Wolf and President and CEO Rakesh Gangwal said in a joint statement "as a result of the decision by UAL Corp. to withdraw from the merger" the company has received numerous questions from employers and customers and unsolicited enquiries from other companies about parts of the company.
US Airways (U: Research, Estimates) last week told employees that the United Airlines deal was no longer an option. The airline's board of directors will meet on July 18 to review options that senior management have been examining as alternatives.
The merger faced opposition from Justice Department antitrust regulators, and Secretary of Transportation Norman Mineta has questioned whether the merger would win approval.
Critics in Congress and elsewhere noted that the merger of the nation's No. 1 and No. 6 airlines would have given the three biggest U.S. carriers control of about 75 percent of domestic air traffic. That, they argued, would lead to higher fares and decreased service.
Shares of US Airways fell 10 cents to $16.40 Tuesday, while UAL (UAL: Research, Estimates) fell 11 cents to $33.98.
-- from staff and wire reports