Hawaiian Shares Jump Following Alaska Air Acquisition Announcement

Shares of Hawaiian Holdings (NASDAQ:HA) surged by more than 188% intra-day today following the news that Alaska Air (NYSE:ALK) has proposed to buy the company for $1.9 billion. In this deal, Alaska Air will pay $18 per share in cash, and the total transaction includes Hawaiian Airlines’ net debt of $0.9 billion. The companies expect to achieve around $235 million in synergies from the deal, which they view as a conservative estimate.
The acquisition is expected to be finalized within the next 12 to 18 months. Analysts are pointing out the strategic advantages of this acquisition, particularly noting that it grants Alaska Air international exposure and entry into the Oneworld airline alliance. However, there are concerns about potential regulatory challenges, as seen in the scrutiny of JetBlue’s attempted merger with Spirit Airlines. Reflecting these concerns, Alaska Air’s shares dropped more than 15% intra-day today.

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