What’s the saying again: buy on the rumor, sell on the news?
Reports on Thursday that the biggest unions representing workers at American-Airlines parent AMR (AAMRQ) had reached a deal to support a takeover bid by US Airways (LCC) sent shares up 16%. Unnamed sources had told Bloomberg about the deal; the unions didn’t comment on it.
On Friday, the AMR unions confirmed that they had made a tentative labor deal with US Airways, claiming it could save 6,2000 jobs that would be cut by AMR if no deal is made.
US Airways shares are down 3.3% this morning, worse than the rest of the sector.
