RENO, Nev., Nov. 19 /PRNewswire/ -- Reno Air, Inc.
(Nasdaq: RENO; PCX: RNO) announced today it has signed a definitive merger
agreement with American Airlines under which American will acquire Reno Air.
The merger agreement provides for a cash tender offer, which would commence no
later than Wednesday, November 25, 1998 to acquire all of the outstanding
common shares of Reno Air at $7.75 per share. In addition, American will also
tender for all outstanding 9% Series A Cumulative Convertible Exchangeable
Preferred Stock.
The board of directors of Reno Air has unanimously approved the merger
agreement on behalf of its stockholders and recommended that stockholders
tender their shares pursuant to the offer.
The tender offer shall be conditional upon the valid tender of Reno Air
shares representing a majority of the voting stock of Reno Air and the
expiration or termination of the waiting periods under Hart-Scott-Rodino
legislation relating to such mergers. American Airlines and Reno Air expect
to close the transaction in the first quarter of 1999.
"The acquisition of Reno Air by American Airlines is the right decision
for our shareholders, our employees and the communities we serve," said Joseph
O'Gorman, chairman, president and CEO of Reno Air. "This merger will
complement and enhance American's global airline network. The transaction
will provide stability to our employees and offer our customers access to the
world's largest network of airlines," continued O'Gorman.
Reno Air has had a marketing partnership with American since 1993 and
operates 186 peak daily departures to 16 cities. The carriers said there is
virtually no overlap on the routes served by American and Reno Air.
Reno Air expects to be integrated into American upon approval of the
agreement after details of employee and fleet integration are decided.
SOURCE Reno Air, Inc.
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Related links:
http://www.renoair.com
Company News On-Call:
http://www.prnewswire.com/comp/740075.html or fax,
800-758-5804, ext. 740075
CONTACT:
Joanne Smith of Reno Air, 702-954-5023, or
http://www.renoair.com
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