Alaska Air to Buy Virgin Amer­ica for $2.6 B

The Economic Times - - Companies -

Alaska Air Group Inc agreed to buy Virgin Amer­ica Inc. for $2.6 bil­lion, over­com­ing in­ter­est in the Richard Bran­son-backed car­rier from Jet­Blue Air­ways Corp. to se­cure a deal that bol­sters its main West Coast busi­ness while open­ing up key air­ports in New York and Wash­ing­ton. Alaska Air will pay $57 a share for Virgin Amer­ica stock, with the deal worth about $4 bil­lion, in­clud­ing debt and cap­i­talised air­craft op­er­at­ing leases, the Seat­tle-based com­pany said on Mon­day. “We’ve been think­ing about an ac­qui­si­tion for a cou­ple of years,” Alaska CEO Brad Tilden said on a con­fer­ence call.

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