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Pension agency sells stake in US Airways
By Staff and wire reports
Tuesday, February 13, 2007
The Pension Benefit Guaranty Corp., the fifth-largest investor in US Airways Group Inc., said it sold its 4.87-million-share stake in the airline. The sale, disclosed Monday in a U.S. regulatory filing, completed the pension insurer's plan to dispose of the US Airways shares acquired in 2005 when it took over the carrier's pensions in bankruptcy. The agency will use the proceeds from the sale to pay benefits to US Airways pilots, flight attendants and other employees, spokesman Gary Pastorius said. The PBGC had a $3 billion claim against US Airways when the airline merged with America West Holdings Corp. in 2005. In addition to the stock, the agency received $13.5 million in cash and a $10 million note for the pension takeover. Shares of Tempe, Arizona-based US Airways rose 74 cents to $58.88 yesterday. The shares have risen 96 percent in the past 12 months.
By Staff and wire reports
Tuesday, February 13, 2007
The Pension Benefit Guaranty Corp., the fifth-largest investor in US Airways Group Inc., said it sold its 4.87-million-share stake in the airline. The sale, disclosed Monday in a U.S. regulatory filing, completed the pension insurer's plan to dispose of the US Airways shares acquired in 2005 when it took over the carrier's pensions in bankruptcy. The agency will use the proceeds from the sale to pay benefits to US Airways pilots, flight attendants and other employees, spokesman Gary Pastorius said. The PBGC had a $3 billion claim against US Airways when the airline merged with America West Holdings Corp. in 2005. In addition to the stock, the agency received $13.5 million in cash and a $10 million note for the pension takeover. Shares of Tempe, Arizona-based US Airways rose 74 cents to $58.88 yesterday. The shares have risen 96 percent in the past 12 months.
