After seven months of negotiating with the FTC, US Airways and AMR Corp (parent of American Airlines) have been told that the government will sue to block their merger. Remember now, American Airlines is in bankruptcy—right now.
Now the merger will head to court, but it’s too late to undo the damage some shareholders have endured. Take a look at the drop in price for AMR shares over the last two days. That’s what can happen to speculators who jump into shares of dodgy companies. Shares are down 53% in two days.