The Alaska Air and Hawaiian Holdings merger cleared the U.S. Justice Department
Alaska Air Group Inc (NYSE:ALK) and Hawaiian Holdings, Inc. (NASDAQ:HA) are moving in different directions this morning after their ongoing acquisition talks cleared the U.S. Justice Department. The U.S. Transportation Department now must approve the $1.9 billion deal, which would result in the largest merger of carriers the country has seen since Alaska and Virgin America eight years ago.
Hawaiian stock is taking flight, up 11.6% at $17.72 at last glance and trading at its highest level in more than years. HA added more than 216% in December after news of the merger came out. The security is 92% higher over the last 12 months, and now sports a nearly 25% year-to-date gain.
The equity's normally quiet option pits are exploding with activity today. Already, 3,790 calls and 2,992 puts have crossed the tape, which is double the average intraday amount. Most popular is the September 16 put, where new positions are being opened.
Alaska Air stock, meanwhile, is trading near breakeven at $34.98. Shares were attempting a comeback after an early August dip to this year's lows, but that rally lost steam at the $36 level. ALK now sports an 18.3% year-over-year deficit.