DOJ "Unlikely to Approve" Hawaiian Airlines Merger

BH July 24, 2024: … Hawaiian Airlines merger sentiment: stock sank 10% today, over 16% in past five days.  Reports and sentiment within the past week reflect growing concern that the Department of Justice will likely block the $1.8 billion sale to Alaska Airlines, casting doubt on the merger’s success. This uncertainty has significantly impacted Hawaiian’s stock, which sank over 16% in the past five days. It is trading at a big discount compared with the price that Alaska is prepared to pay.

“The Department of Justice is unlikely to approve its planned $1.8 billion sale to Alaska Air. The antitrust regulator is preparing to challenge the combination.” -- Seeking Alpha. 

read … DOJ "Unlikely to Approve" Hawaiian/Alaska Deal + Southwest's Tailspin Risks Hawaii Travel

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Bloomberg July 30, 2024: Justice Department officials remain divided internally over whether to file a lawsuit to block the deal given the small relative size of Alaska and Hawaiian compared to the US’s four major airlines, according to people familiar with the review. Federal officials have shared their potential reservations with state regulators who are also reviewing the transaction, said the people, who asked not to be identified discussing internal deliberations.

BH July 30, 2024: Hawaii Travelers Left Hanging With Delay | Alaska-Hawaiian Merger - Beat of Hawaii

KHON July 30, 2024: Hawaiian-Alaska merger federal review extended (youtube.com)

HA July 30, 2024: Hawaiian Holdings Reports 2024 Second Quarter Financial Results | Hawaiian Airlines | Newsroom – “The Company and Alaska continue to work cooperatively with the DOJ”

SA: Ruling on Alaska-Hawaiian merger is stalled  Alaska Airlines President and CEO Ben Minicucci said during a July 18 second-­quarter earnings call, “Look, we went through the entire process with the DOJ, and all the documents and discussions have occurred. We’re in the homestretch here in two weeks, and we’re waiting to see what DOJ comes back to us with. So we’ve made our case, and we feel pretty strong about our case on being pro-­consumer and pro-­competitive.”

CPI: Alaska Air Extends Review for $1.9 Billion Hawaiian Airlines Deal Amid Antitrust Concerns

ANS: Department of Justice review period extended for Alaska, Hawaiian Airlines merger (alaskasnewssource.com)

SEC Form 8-K filed July 30, 2024 by Alaska Air Group

On December 2, 2023, Alaska Air Group, Inc., a Delaware corporation (“Alaska”), entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Hawaiian Holdings, Inc., a Delaware corporation (“Hawaiian”), and Marlin Acquisition Corp., a Delaware corporation and a wholly owned subsidiary of Alaska (“Merger Sub”), providing for the merger of Merger Sub with and into Hawaiian (the “Merger”), with Hawaiian surviving as a wholly owned subsidiary of Alaska.

As previously disclosed, on May 7, 2024, Alaska and Hawaiian certified substantial compliance with a request for additional information and documentary material (the “Second Request”) received from the Antitrust Division of the Department of Justice (the “DOJ”) on February 7, 2024 in connection with the DOJ’s review of the Merger, which triggered the start of a Review Period (as defined below) under a timing agreement Alaska and Hawaiian entered into with the DOJ on March 27, 2024. Pursuant to the timing agreement, Alaska and Hawaiian agreed, among other things, not to consummate the Merger before 90 days following the date on which both parties certified substantial compliance with the Second Request (the “Review Period”) unless they received written notice from the DOJ prior to the end of the Review Period that the DOJ has closed its investigation of the Merger. The Review Period was previously scheduled to expire on August 5, 2024.

On July 29, 2024, Alaska and Hawaiian agreed with the DOJ to extend the Review Period until 12:01 a. m. Eastern Time on August 15, 2024.

Reuters July 30, 2024: Alaska Airlines, Hawaiian Airlines extend review period of deal amid antitrust scrutiny -- “The takeover would give Alaska Air control of more than 50% of the market for flights to Hawaii….”

SF: Hawaiian Airlines Stocks' Tumble As DOJ Reportedly Seeks To Challenge Alaska Airlines Merger (simpleflying.com)

MSN July 30, 2024: Will US Government Block Merger Between Hawaiian Airlines and Alaska Airlines?

Alpha: Hawaiian Holdings tumbles amid reports DOJ may move to block Alaska Air deal