The U.S. Department of Justice has asked a judge to postpone trial for the proposed merger of US Airways and AMR Corporation (OTCMKTS:AAMRQ) as its staff would not be working due to the federal government shutdown.
However, a lawyer named Richard Parker for the airlines opined that he expects the trial to start on the proposed date of November 25. The judge did not mention anything about the stay. The airlines and Texas Attorney General Greg Abbott opined that an important announcement pertaining to the merger would be announced and the details would be shown on the site set for the merger named newamericanarriving.com. The shares of US Airways surged by over 3.3 percent whereas AMR rose by 8.76%. The department has asked for extension due to the government-wide shutdown which began on Tuesday.
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A number of states as well as the department had sued both airlines for stopping the merger and had cited reasons of unfair competition as well as higher fares for doing so.
The airlines have attempted to defend the deal stating that it would result in savings of $500 million for consumers due to strong competition to United Continental as well as Delta Airlines.
Arena Pharmaceuticals, Inc.(NASDAQ:ARNA)’s shares plummeted after Credit Suisse analyst cut the sales forecast for the firm’s weight-loss drug Belviq.
Analyst Lee Kalowski opined that the sales of the drug in the next two quarters would be short of the previous estimates. Along with this, he trimmed annual sales projections for the drug for next five years.
The analyst is of the view that net sales of Belviq would be $3 million in quarter three, drastically down from $19 million projected earlier. On the other hand, he reduced the fourth-quarter estimate to $12 million from $36 million.
The Food and Drug Administration approved Belviq in June 2012 for obese or overweight people having one serious medical condition, such as diabetes or high cholesterol.