By Brooke Sutherland and Mary Schlangenstein – Aug 27, 2013
JetBlue Airways Corp. (JBLU) may become a takeover target for AMR Corp. (AAMRQ)’s American Airlines or US Airways Group Inc. if federal regulators succeed in derailing their merger.
The U.S. Department of Justice sued two weeks ago to block the creation of the world’s biggest carrier, saying it would reduce competition and boost fares. Without the $12.1 billion deal, both airlines could turn their sights to JetBlue, whose smaller size makes it less likely to raise antitrust issues while also offering a base in New York, the busiest air-travel market, said JetBlue shareholder Eagle Asset Management Inc.
While buying JetBlue would do less to close the gap with larger rivals, shareholder Disciplined Growth Investors Fund said the airline remains one of the more attractive candidates left in an industry shrunk by mergers and beset by bankruptcies. With a market value of $1.8 billion, the company may be vulnerable as its shares trail an index of the largest U.S. airlines by the most since 2006, according to data compiled by Bloomberg….